Evaluates effects of the new British funding formula for universities, based on the research assessment exercise (RAE). Compares effects of the RAE on two contrasting universities and finds the RAE has dramatically affected university organization, teaching, and research. RAE may have increased efficiency in teaching and research but encourages…

Surveyed 249 faculty at two British universities regarding their perceptions of changes in teaching and research since the introduction of separate funding for teaching and research in 1986. Faculty at both the research-oriented and teaching-oriented university reported spending less time on research and more time on teaching and administrative…

A review of the state of the art of educational economics considers recent seemingly conflicting or disparate forms of economic analysis such as human capital theory, the study of education and economic growth, distribution of income, internal system efficiency, and education's effects on crime, savings, and consumption. (MSE)

Since Great Britain instituted a policy in 1979 of charging foreign students the "full cost" of their education, there has been little effort to determine what the full cost or the policy's impact is. Calculations reveal net gain to British taxpayer from having foreign students in non-advanced further education and slight loss from having them in…

A discussion of the current economics of the United Kingdom's higher education system outlines conceptual models used by economists for evaluating a system's efficiency and applies them to assess the effect of recent funding changes. It is concluded that increased emphasis on research is adversely affecting university teaching quality. (MSE)