The governance and performance of universities : evidence from Europe and the US

@inproceedings{Aghion2009TheGA,
  title={The governance and performance of universities : evidence from Europe and the US},
  author={Philippe Aghion and Mathias Dewatripont and Caroline Hoxby and Andreu Mas-Colell and Andr{\'e} Sapir},
  year={2009}
}
We test the hypothesis that universities are more productive when they are both more autonomous and face more competition. Using survey data, we construct indices of university autonomy and competition for both Europe and the United States. We show that there are strong positive correlations between these indices and multiple measures of university output. To obtain causal evidence, we investigate exogenous shocks to US universities’ expenditures over three decades. These shocks arise through… CONTINUE READING
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