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Solve for the equilibrium: Dutch higher education

1) The number of first-year students in the Netherlands has soared from 105 000 in 2000 to 135 000 in 2011. The 30% increase is a direct result of government policy which links university funding with student numbers. In some programs in the country, student numbers have more than doubled during the last five years. Everyone is encouraged to enter the university system.

2) In the general case, there is no selection at the gate. Students cannot be refused to enter a program.

3) Now, the government’s objectives are to reduce the number of first-year drop-outs  and slash the number of students who do not graduate within four years. Both objectives are being supported by financial incentives and penalties for the universities.

Something’s gotta give. I wonder what…

P.S. ‘Solve for the equilibrium’ is the title of a rubric from Marginal Revolution.

Published inGame theoryThe profession

One Comment

  1. Did you see the tripling of students (public) ‘Administration’ at universities? 4000 to 12000.
    But I am not sure that the overall increase is the direct result of government funding for numbers of students – as far as I know government policies link funding to student numbers already for decades. So, that should not explain the increase in numbers.

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