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Private versus public financing of higher education: U.S. policy in comparative perspective

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Abstract

Funding policies for higher education differ greatly from nation to nation and one of the major debates concerns the private-public mix. Five principal patterns emerge from the following variables: whether the system is comprised of just one sector or dual private-public sectors, the size of each sector (if there are dual sectors), the contribution of private funds to each sector, and the contribution of public funds to each sector. Beyond their defining empirical characteristics, each pattern is based on distinctive historical and normative rationales. Each therefore faces different policy choices within the more general private-public debate, although certain basic value questions commonly arise. Seen in comparative perspective, the United States continues to stand out for its significant dependence on private finance. This is because, compared to other developed nations, the United States still has an exceptionally large private sector with relatively great private finance and because, compared to almost all countries, the U.S. public sector also attracts substantial private income. There is great variation, however, and individual U.S. state systems may find useful counterparts to their empirical realities and policy dilemmas in certain foreign (national) systems.

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Levy, D. Private versus public financing of higher education: U.S. policy in comparative perspective. High Educ 11, 607–628 (1982). https://doi.org/10.1007/BF00139778

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