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University funding: impact on teaching and research

Research output: Contribution to journalArticle

Author(s)

John A Beath, Joanna Poyago-Theotoky, David Tregear Ulph

School/Research organisations

Abstract

We address the following question: how does a higher education funding system influence the trade-off that universities make between research and teaching? We do so by constructing a model that allows universities to choose actively the quality of their teaching and research when faced with different funding systems characterised by the pivotal role of the university funding budget constraint. In particular, we derive the feasible sets that face universities under such systems and show how, as the parameters of the system (the research block grant element, the research quality premium and the incentives-triggering quality threshold) are varied, the nature of the university system itself changes. Different ‘cultures’ of the university system emerge such as the ‘research elite’ and the ‘binary divide’.
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Details

Original languageEnglish
Number of pages26
JournalEconomics: The Open-Access, Open-Assessment E-Journal
Volume6
Issue number2
DOIs
Publication statusPublished - 12 Jan 2012

    Research areas

  • University funding systems; higher education; research quality; teaching quality; university budget constraint; research elite; binary divide

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