Title: Program duplication in higher education is not necessarily bad
Authors: Kelchtermans, Stijn ×
Verboven, Frank #
Issue Date: Jun-2010
Series Title: Journal of Public Economics vol:94 issue:5-6 pages:397-409
Abstract: Public systems of higher education have recently attempted to cut costs by providing financial incentives to cut duplicated programs, i.e. programs that are offered at different institutions. We study the profit and welfare effects of reducing program duplication, against the background of a funding system reform in Flanders (Belgium). We find that dropping duplicated programs at individual institutions tends to be socially undesirable, due to the students’ low willingness to travel to other institutions and to the limited fixed cost and variable cost savings. Furthermore, we find that the financial incentives offered to drop programs may be very ineffective, leading to both undesirable reform and undesirable status quo. These findings emphasize the complexities in regulating product diversity in higher education, and serve as a word of caution towards the various decentralized financial incentive schemes that have recently been introduced.
ISSN: 0047-2727
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Econometrics, Leuven
Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
Research Centre for Globalization, Innovation and Competition, Campus Brussels (-)
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

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