Interjurisdictional Competition for Higher Education and Firms
(2005) IAP Conference on Higher Education, Multijurisdictionality and Globalisation — Location: Mons, Belgique
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- Authors
- Abstract
- (en) In this paper we consider two regions competing for the investment by a mobile firm whose decision is based on the quality of human capital in each region. This in turn depends on the initial skill level and the amount of higher education in the region, with a possible spillover to the other region. Therefore each region, through subsidies, tries to attract a larger part of the university. Moreover the central government helps the poorer region by providing it with an extra budgetary allocation. The game is nested in a series of settings which are compared, especially from the point of view of their redistributive efficiency. From a policy point of view the paper provides an argument for allocating a significant amount of the competence in human capital formation, to the federal authorities.
- Affiliations
Louvain School of Management Accounting & Finance
Citations
Gérard, M., & Ruiz, F. (2005). Interjurisdictional Competition for Higher Education and Firms. IAP Conference on Higher Education, Multijurisdictionality and Globalisation, Mons, Belgique. https://hdl.handle.net/2078.5/128871