Reversing the Balance Wheel Principle

Orkodashvili, Mariam (2008): Reversing the Balance Wheel Principle.

Abstract

The paper discusses funding principles and policies of higher education during the recession period. The role of state appropriations for the viability of public higher education institutions is emphasized. State funding affecting institutional behaviour is another issue raised. The paper analyzes the possibility of expanding state funding for higher education institutions instead of cutting during economic recession. The examples of Midwestern states is discussed for this purpose. Funding higher education institutions is perceived as an important component of the process of investing in human capital. Referring to scholarly findings, Leader-Laggard Model and Event History Analysis are suggested as optimal methods for evaluating the implementation of new policies as they spread from one state to another.

• Item Type: MPRA Paper
• Language: English
• Keywords: higher education funding; state appropriations; balance wheel; institutional behaviour; quality; performance funding; human capital; Event History Analysis; Leader-Laggard Model.
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A23 - Graduate; A - General Economics and Teaching > A1 - General Economics > A12 - Relation of Economics to Other Disciplines

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