An Economic Rationalization Framework for Higher Education
DOI:
https://doi.org/10.32871/rmrj2008.01.04Keywords:
rationalization framework, HEIs, subsidy, data miningAbstract
The marginal rate of returns (MRR) of higher education programs affect a country’s economy. It is in this light that the current study primarily intends to determine which higher education programs the state should fully subsidize and which programs the private education service providers should take charge of. The net effect of this identification is to rationalize the supply side of the economy. Quantitative non-experimental retrospective explanatory design and data mining techniques were used. Consequently, based on the programs’ marginal rate of returns, indeed there are certain higher education services that bring about public good while some others do not. Agriculture, services, humanities and arts, sciences, health and welfare, engineering, manufacturing and construction, and education programs demonstrate greater public good while social sciences, business, and law generally promote greater private returns to the individuals rather than to the society.
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Trends in global higher education: tracking an
academic revolution. 2009 World Conference
on Higher Education - The New Dynamics of
Higher Education and Research for Societal
Change and Development. Retrieved from,
https://unesdoc.unesco.org/ark:/48223/
pf0000183168
Asian Development Bank (ADB). (2012). Higher
Education in Dynamic Asia: Counting the Cost -
Financing Asian Higher Eudcation for Inclusive
Growth. Retrieved June 2016 from, https://
www.adb.org/publications/series/highereducation-dynamic-asia-study-reports
Asian Development Bank. (2014). Bangladesh:
Public-Private Partnership in Higher
Education. Technical Assistance Consultant’s
Report. Retrieved June 2016, from http://
www.adb.org/sites/default/files/project
document/81969/45181-001-tacr-01.pdf
Canadian International Development Agency
Philippines-Canada Local Government
Support Program. (2003). Re-Envisioning
Local Agricultural Development: A
Guide for Development Managers.
Retrieved from https://www.scribd.com/
document/38724806/Re-envisioning-LocalAgricultural-Development-A-Guide-forDevelopment-Managers
Central Intelligence Agency. (2016). The world
factbook.Retrieved from https://www.cia.
gov/library/publications/resources/theworld-factbook/geos/aj.html
Chen, L. (2013). The Changing Nature of China’s
Higher Education. Journal of Education and
Learning, 2(2). doi:10.5539/jel.v2n2p190
Department of Budget and Management. (2016).
National expenditure program. Department
of Budget and Management. Retrieved from
http://www.dbm.gov.ph/wp-content/
uploads/DBCC/FSH/2004-2013/II/Tableperc
entage20II.B.2percentage20-percentage
Edralin, D. M. (2000). The entertainment industry in
the Philippines. URCO library. Retrieved from
https://serp-p.pids.gov.ph/serp-p/details.
php?pid=4183¶m=
Education Encyclopedia. (2016). Job Descriptions
and Careers, Career and Job Opportunities,
Career Search, and Career Choices and
Profiles. Retrieved from https://education.
stateuniversity.com/
Health Care Asia. (2017). Shortage of health
professionals in the Philippines, a growing
concern. Retrieved from http://www.
healthcareasia.org/2017/shortage-ofhealth-professionals-in-the-philippines-agrowing-concern/
International Monetary Fund. (2015). World
economic outlook database. Retrieved
from http://www.imf.org/external/pubs/ft/
weo/2015/01/weodata/download.aspx
Kocaqi, E. (2015). The higher education a private
or a public good? Academic Journal of
Interdisciplinary Studies, 4(3), 432-435.
Doi:10.5901/ajis.2015.v4n3s1p432
Nash, J. F. (1953). Two-Person Cooperative Games.
Econometrica 21, 128–140.
Pham, Ly and Briller, Vladimir.(2015). Private Higher
Education in Vietnam and Recent Policy
Development. Retrieved 2016, from https://
js.vnu.edu.vn/SSH/article/view/242/0
Philippine Journal of Science. (2019). Brain Drain
and Inbreeding in the Training of Future
Filipino Scientists. Philippine Journal of
Science, 148 (1), VII-IX.
Puno, C. (2005). Higher education development
strategies in the Philippines for a strong
republic. Retrieved from http://www.asiaedu.org/EN/NewsCenter_View.asp?classid=
75&id=366&parentclassid=
Richter, L. (2016). The Impact of the Maritime
Industry on the Philippine Economy.
Retrieved from https://philippinen.ahk.de/
fileadmin/AHK_Philippinen/Publications/
Maritime_Industry_in_the_Philippines__
GPCCI_2016_.pdf
Schoenenberger, A. M. (2005). Are higher
education and academic research a public
good or a public responsibility? A review
of the economic literature, in L. Weber and
S. Bergan (eds) The Public Responsibility for
Higher Education and Research. Strasbourg:
Council of Europe Publishing: 45-94.
Schwab, K. (2015). The Global Competitiveness
Report 2014-2015. World Economic
Forum. Retrieved June 2016 from
http://www3.weforum.org/docs/WEF_
GlobalCompetitivenessReport_2014-15.pdf
Shaw, J. S. (2010). Education- A bad public good.
The Independent Review, 15(2), 241-256.
Retrieved from https://www.independent.
org/pdf/tir/tir_15_02_05_shaw.pdf
Smith, A. (1776). An inquiry into the nature and
causes of the wealth of nations. In A. Smith,
An Inquiry into the Nature and Causes of the
Wealth of Nations. Retrieved from https://
www.econlib.org/library/Smith/smWN.html
United Nations Educational, Scientific and Cultural
Organization. (2011). UNESCO Institute for
Statistics. doi:http://www.uis.unesco.org/
Education/Documents/isced-2011-en.pdf
UNESCO Institute for Statistics. (2016). Government
expenditure per tertiary student as
percentage of GDP per capita (percentage).
The World Bank. Retrieved from http://data.
worldbank.org/indicator/SE.XPD.TERT.PC.ZS
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Published
2020-06-30
How to Cite
Cutamora, J. C., & Padua, R. (2020). An Economic Rationalization Framework for Higher Education. Recoletos Multidisciplinary Research Journal, 8(1), 43–65. https://doi.org/10.32871/rmrj2008.01.04
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