Many countries rely for the majority of their university education on
public universities. Public universities have a certain degree of
autonomy to compete for research funding, to establish profit making
start-ups or sell patents or to find other funding for their research.
They can sometimes also set tuition fees for their educational efforts,
for all students or for specific subgroups of students. These additional
funds are very important for public universities to maintain their
international position, in particular in cases where governments are
retreating in funding (like, for example, in California). We start by
consider the impact of funding on the quality of research and teaching
and though research and teaching on the economy. Finally we consider the
possible effects of the Covid-19 crisis on university funding.
JEL Classification: F22, I22, I23, I28, O15, O32, O34
Keywords: University finance, tuition fees, Government policy, International student migration, innovation, human capital, economic development, Covid-19