Higher Education Finance
- LAST MODIFIED: 24 November 2020
- DOI: 10.1093/obo/9780199756810-0260
- LAST MODIFIED: 24 November 2020
- DOI: 10.1093/obo/9780199756810-0260
Introduction
The financing of higher (or tertiary) education deals with issues of resourcing (i.e., funding) higher education institutions, their students, and their (academic and nonacademic) staff. The study of higher education finance covers the sources of funding for higher education (including the balance between public and private funds) as well as the uses of those funds (for education, research, student support, infrastructure, staffing, campus development, etc.). The management of funds is essentially a study of choice—about using scarce resources to achieve often-conflicting goals—which implies that it also extends to issues of priority setting, effectiveness, and efficiency. In many ways, these are questions of a political-economic nature. With higher education being such a large part of the public sector, the study of higher education finance, on the one hand, may be seen as part of public finance, while on the other hand, as a subfield of the economics of education. In times of shrinking public budgets, there is increasing scrutiny on how public resources for higher education are allocated and used. At the national (country, state) level, reforms in educational financing are frequently debated in policy circles, with the goal of identifying the funding mechanism that produces the best outcomes in terms of guaranteeing access for students, high-quality education, and high-quality research, as well as connecting this education and research to the needs of society. At the level of the higher education institution (i.e., university, college, or specialized institution), debates will often focus on the internal budgeting system and how the institution can make sure it runs its operations in a financially sound way in the short term, with sufficient incentives for efficiency and revenue generation, as well as incentives for innovation on the mid- to long term. All of this illustrates the many trade-offs and dilemmas that appear in the study of higher education finance. It also shows that the topic of higher education finance touches on many other research fields in higher education, including, for example, governance, privatization, and student financial aid. And given the political-economic nature of these issues, many conceptual approaches used for the study of higher education finance are imported from economics, political science, public administration, public policy, or organizational studies. Because the field of higher education finance is constantly evolving, the topics that are at the forefront of scholarly research are to be found primarily in academic journals. The themes covered in the study of higher education finance deal with some of the above-mentioned major trade-offs and dilemmas. After first presenting some of the general-overview works in higher education finance, this article will cover some of these themes touching on the most-important policy debates in higher education finance.
General Overviews and Historical Studies
Higher education finance is part of the wider area of public finance and public-sector studies. Its study is therefore often included in textbooks dealing with public-sector economics or education economics. A textbook that introduces the topic of higher education finance is Barr 2012, a handbook that pays considerable attention to education—and, as part of that, higher (i.e., tertiary) education and its financing. Textbooks on higher education finance do not really exist. However, there are textbooks on the economics of (higher) education, such as Leslie and Brinkman 1988; Cohn and Geske 1990; Breneman, et al. 1993; or Johnes 1993, that cover some aspects of higher education finance, next to topics such as the economic and noneconomic benefits of higher education, the cost of higher education provision, efficiency in higher education, demand and supply of graduates, the economic impact of higher education, and organizational behavior in higher education. Theoretical approaches are equally diverse and range from human capital theory and labor economics to industrial economics. Most of these overview works on higher education finance are edited volumes, and many of them are written for North American graduate students that are preparing for postgraduate degree or a professional career in higher education (or both). These overviews often bring together contributions by different authors that rely on US case studies and materials. Overview works that go beyond the North American world, such as Altbach and Johnstone 1993 or OECD 2020, are less in number and often focus on a limited number of countries and issues.
Altbach, Philip G., and D. Bruce Johnstone. 1993. The funding of higher education: International perspectives. New York: Garland.
This book contains case studies of higher education systems from across the world, and the ways in which these systems are funded.
Barr, Nicholas. 2012. Economics of the welfare state. 5th ed. Oxford: Oxford Univ. Press.
Next to health and housing, education is an essential part of the welfare state. As part of other services provided by the welfare state, this textbook firmly places higher education finance in economic theory as well as political theory and discusses arguments for state intervention.
Breneman, David W., Larry L. Leslie, and Richard E. Anderson, eds. 1993. The ASHE reader on finance in higher education. Needham Heights, MA: Ginn.
This reader on the finance in higher education primarily examines the American university system and its federal, state, and institutional policies and practices.
Cohn, Elchanan, and Terry G. Geske. 1990. The economics of education. 3d ed. New York: Pergamon.
This is a historically useful textbook treatment of the economic principles and practices undergirding higher education financing in the United States.
Johnes, Geraint. 1993. The economics of education. New York: Palgrave Macmillan.
A collection of chapters rooted in the theory of human capital and touching on a diverse range of issues, including the cost of provision, privatization, and student finance.
Leslie, Larry L., and Paul T. Brinkman. 1988. The economic value of higher education. New York: Macmillan.
Critical review of concepts, methods, and literature in the economics of higher education. Reviews the economic impact of higher education on students, communities, and the wider economy and includes an assessment of higher education financing policy.
McPherson, Michael S., Morton Owen Schapiro, and Gordon C. Winston. 1993. Paying the piper: Productivity, incentives, and financing in US higher education. Ann Arbor: Univ. of Michigan Press.
Edited volume that is very much oriented on the economics of American higher education. Includes chapters by some of the leading American scholars on issues such as institutional finance and student finance.
OECD. 2020. Resourcing Higher Education: Challenges, Choices and Consequences. Paris: Organisation for Economic Co-operation and Development.
A very comprehensive publication that identifies the policy choices that have been made in OECD member and partner countries to address the main questions and challenges relating to three areas of resourcing higher education: (1) Resource generation; (2) Resource allocation; (3) Resource use. It presents research-based evidence about the effects of these policy choices and discusses the implications for the policies governments use to co-ordinate and shape higher education systems.
Paulsen, Michael B., and John C. Smart. 2001. The finance of higher education: Theory, research, policy, and practice. New York: Agathon Press.
A highly useful collection of contributions that provide a range of economic perspectives, theories, and models that may serve as foundations for the study of higher education finance.
Weidman, John C., John L. Yeager, Laurie Cohen, et al., eds. 2015. Economics and finance of higher education. Association for the Study of Higher Education Reader Series. Boston: Pearson Learning Solutions.
A collection of almost sixty previously published, historical, and more-current readings that provide a thorough overview of all aspects of higher education finance. The readings are organized into eight sections.
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Article
- Academic Achievement
- Academic Audit for Universities
- Academic Freedom and Tenure in the United States
- Action Research in Education
- Adjuncts in Higher Education in the United States
- Administrator Preparation
- Adolescence
- Advanced Placement and International Baccalaureate Courses
- Advocacy and Activism in Early Childhood
- African American Racial Identity and Learning
- Alaska Native Education
- Alternative Certification Programs for Educators
- Alternative Schools
- American Indian Education
- Art Education
- Artificial Intelligence and Learning
- Assessing School Leader Effectiveness
- Assessment, Behavioral
- Assessment, Educational
- Assessment in Early Childhood Education
- Assistive Technology
- Augmented Reality in Education
- Beginning-Teacher Induction
- Bilingual Education and Bilingualism
- Blended Learning
- Bullying
- Case Study in Education Research
- Changing Professional and Academic Identities
- Character Education
- Children’s and Young Adult Literature
- Children's Beliefs about Intelligence
- Children's Rights in Early Childhood Education
- Citizenship Education
- Civic and Social Engagement of Higher Education
- Classroom Learning Environments: Assessing and Investigati...
- Classroom Management
- Coherent Instructional Systems at the School and School Sy...
- College Admissions in the United States
- College Athletics in the United States
- Community Relations
- Comparative Education
- Computer-Based Testing
- Conceptualizing, Measuring, and Evaluating Improvement Net...
- Continuous Improvement and "High Leverage" Educational Pro...
- Counseling in Schools
- Creativity
- Critical Perspectives on Educational Innovation and Improv...
- Critical Race Theory
- Crossborder and Transnational Higher Education
- Cross-National Research on Continuous Improvement
- Cross-Sector Research on Continuous Learning and Improveme...
- Cultural Diversity in Early Childhood Education
- Culturally Responsive Leadership
- Culturally Responsive Pedagogies
- Culturally Responsive Teacher Education in the United Stat...
- Curriculum Design
- Data Collection in Educational Research
- Data-driven Decision Making in the United States
- Deaf Education
- Desegregation and Integration
- Design Thinking and the Learning Sciences: Theoretical, Pr...
- Development, Moral
- Dialogic Pedagogy
- Digital Age Teacher, The
- Digital Citizenship
- Digital Divides
- Disabilities
- Distance Learning
- Distributed Leadership
- Doctoral Education and Training
- Early Childhood Education and Care (ECEC) in Denmark
- Early Childhood Education and Development in Mexico
- Early Childhood Education in Aotearoa New Zealand
- Early Childhood Education in Australia
- Early Childhood Education in China
- Early Childhood Education in Europe
- Early Childhood Education in Sub-Saharan Africa
- Early Childhood Education in Sweden
- Early Childhood Education Pedagogy
- Early Childhood Education Policy
- Early Childhood Education, The Arts in
- Early Childhood Mathematics
- Early Childhood Science
- Early Childhood Teacher Education
- Early Childhood Teachers in Aotearoa New Zealand
- Early Years Professionalism and Professionalization Polici...
- Economics of Education
- Education For Children with Autism
- Education for Sustainable Development
- Education Leadership, Empirical Perspectives in
- Education of Native Hawaiian Students
- Education Reform and School Change
- Educational Statistics for Longitudinal Research
- Educator Partnerships with Parents and Families with a Foc...
- Emotional and Behavioral Disorders
- Epistemic Beliefs
- Equity and Improvement: Engaging Communities in Educationa...
- Equity, Ethnicity, Diversity, and Excellence in Education
- Ethical Research with Young Children
- Ethics and Education
- Ethics of Teaching
- Ethnic Studies
- Evidence-Based Communication Assessment and Intervention
- Family and Community Partnerships in Education
- Family Day Care
- Federal Government Programs and Issues
- Feminization of Labor in Academia
- Finance, Education
- Financial Aid
- Formative Assessment
- Future-Focused Education
- Gender and Achievement
- Gender and Alternative Education
- Gifted Education
- Global Mindedness and Global Citizenship Education
- Global University Rankings
- Governance, Education
- Grounded Theory
- Growth of Effective Mental Health Services in Schools in t...
- Higher Education and Globalization
- Higher Education and the Developing World
- Higher Education Faculty Characteristics and Trends in the...
- Higher Education Finance
- Higher Education Governance
- Higher Education Graduate Outcomes and Destinations
- Higher Education in Africa
- Higher Education in China
- Higher Education in Latin America
- Higher Education in the United States, Historical Evolutio...
- Higher Education, International Issues in
- Higher Education Management
- Higher Education Policy
- Higher Education Research
- Higher Education Student Assessment
- High-stakes Testing
- History of Early Childhood Education in the United States
- History of Education in the United States
- History of Technology Integration in Education
- Homeschooling
- Inclusion in Early Childhood: Difference, Disability, and ...
- Inclusive Education
- Indigenous Education in a Global Context
- Indigenous Learning Environments
- Indigenous Students in Higher Education in the United Stat...
- Infant and Toddler Pedagogy
- Inservice Teacher Education
- Integrating Art across the Curriculum
- Intelligence
- Intensive Interventions for Children and Adolescents with ...
- International Perspectives on Academic Freedom
- Intersectionality and Education
- Knowledge Development in Early Childhood
- Leadership Development, Coaching and Feedback for
- Leadership in Early Childhood Education
- Leadership Training with an Emphasis on the United States
- Learning Analytics in Higher Education
- Learning Difficulties
- Learning, Lifelong
- Learning, Multimedia
- Learning Strategies
- Legal Matters and Education Law
- LGBT Youth in Schools
- Linguistic Diversity
- Linguistically Inclusive Pedagogy
- Literacy
- Literacy Development and Language Acquisition
- Literature Reviews
- Mathematics Identity
- Mathematics Instruction and Interventions for Students wit...
- Mathematics Teacher Education
- Measurement for Improvement in Education
- Measurement in Education in the United States
- Meta-Analysis and Research Synthesis in Education
- Methodological Approaches for Impact Evaluation in Educati...
- Methodologies for Conducting Education Research
- Mindfulness, Learning, and Education
- Mixed Methods Research
- Motivation
- Multiliteracies in Early Childhood Education
- Multiple Documents Literacy: Theory, Research, and Applica...
- Multivariate Research Methodology
- Museums, Education, and Curriculum
- Music Education
- Narrative Research in Education
- Native American Studies
- Note-Taking
- Numeracy Education
- One-to-One Technology in the K-12 Classroom
- Online Education
- Open Education
- Organizing for Continuous Improvement in Education
- Organizing Schools for the Inclusion of Students with Disa...
- Outdoor Play and Learning
- Outdoor Play and Learning in Early Childhood Education
- Pedagogical Leadership
- Pedagogy of Teacher Education, A
- Performance Objectives and Measurement
- Performance-based Research Assessment in Higher Education
- Performance-based Research Funding
- Phenomenology in Educational Research
- Philosophy of Education
- Physical Education
- Play
- Podcasts in Education
- Policy
- Policy Context of United States Educational Innovation and...
- Politics of Education
- Portable Technology Use in Special Education Programs and ...
- Pre-Service Teacher Education
- Problem Solving
- Productivity and Higher Education
- Professional Development
- Professional Learning Communities
- Program Evaluation
- Programs and Services for Students with Emotional or Behav...
- Psychology Learning and Teaching
- Psychometric Issues in the Assessment of English Language ...
- Qualitative Data Analysis Techniques
- Qualitative, Quantitative, and Mixed Methods Research Samp...
- Qualitative Research Design
- Quantitative Research Designs in Educational Research
- Race and Affirmative Action in Higher Education
- Reading Education
- Refugee and New Immigrant Learners
- Relational and Developmental Trauma and Schools
- Relational Pedagogies in Early Childhood Education
- Reliability in Educational Assessments
- Religion in Elementary and Secondary Education in the Unit...
- Researcher Development and Skills Training within the Cont...
- Research-Practice Partnerships in Education within the Uni...
- Response to Intervention
- Restorative Practices
- Scale and Sustainability of Education Innovation and Impro...
- Scaling Up Research-based Educational Practices
- School Accreditation
- School Choice
- School Culture
- School District Budgeting and Financial Management in the ...
- School Improvement through Inclusive Education
- School Reform
- Schools, Private and Independent
- School-Wide Positive Behavior Support
- Science Education
- Secondary to Postsecondary Transition Issues
- Self-Regulated Learning
- Self-Study of Teacher Education Practices
- Service-Learning
- Severe Disabilities
- Single Salary Schedule
- Single-sex Education
- Single-Subject Research Design
- Social Context of Education
- Social Justice
- Social Network Analysis
- Social Pedagogy
- Social Science and Education Research
- Social Studies Education
- Sociology of Education
- Standards-Based Education
- Statistical Assumptions
- Student Access, Equity, and Diversity in Higher Education
- Student Assignment Policy
- Student Engagement in Tertiary Education
- Student Learning, Development, Engagement, and Motivation ...
- Student Participation
- Student Voice in Teacher Development
- Sustainability Education in Early Childhood Education
- Sustainability in Early Childhood Education
- Sustainability in Higher Education
- Teacher Beliefs and Epistemologies
- Teacher Collaboration in School Improvement
- Teacher Evaluation and Teacher Effectiveness
- Teacher Preparation
- Teacher Training and Development
- Teacher Unions and Associations
- Teacher-Student Relationships
- Teaching Critical Thinking
- Technologies, Teaching, and Learning in Higher Education
- Technology Education in Early Childhood
- Technology, Educational
- Technology-based Assessment
- The Bologna Process
- The Regulation of Standards in Higher Education
- Theories of Educational Leadership
- Three Conceptions of Literacy: Media, Narrative, and Gamin...
- Tracking and Detracking
- Traditions of Quality Improvement in Education
- Transformative Learning
- Transitions in Early Childhood Education
- Tribally Controlled Colleges and Universities in the Unite...
- Understanding the Psycho-Social Dimensions of Schools and ...
- University Faculty Roles and Responsibilities in the Unite...
- Using Ethnography in Educational Research
- Value of Higher Education for Students and Other Stakehold...
- Virtual Learning Environments
- Vocational and Technical Education
- Wellness and Well-Being in Education
- Women's and Gender Studies
- Young Children and Spirituality
- Young Children's Learning Dispositions
- Young Children's Working Theories