Efficiency and equity in Argentinean university funding

Abstract

This article analyses state university funding policies in Argentina, taking into account the aspects of efficiency and equity based on economic theory. After defining the characteristics that frame the Argentine State University as a public good, a comparison of the performance of the countries of the so-called Group of 7 is presented. It also examines the distributive effects resulting in financial matters from the relationship between the State and the universities and the possibilities of achieving the objective of equal opportunities. The relevant conclusions are that the education system generates an automatic adjustment via a reduction in the quality of the service and that its provision as a public good cannot be justified by the objective of seeking equal opportunities, since in this case severe contradictions have been found, including the fact that those who benefit most are middle and upper-middle income households, which capture 86% of the total subsidy, generating a distributive result that is not in line with the desired objective.