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Professor Henry M. Levin, Teachers College at Columbia University
Efficient Resource Allocation in the Chinese University

Ⅰ. Chinese University Expansion

A. Need for more resources.

B. Efficient use of existing resources.

C. Focus on raising productivity of existing resources.

Ⅱ.Cost-Effectiveness Analysis

A. Rationale.

B. Assumes alternatives-examples.

1. Small versus large classes.

2. Lectures versus discussion.

3. Educational technology.

C. Cost & results.

D. Choosing most efficient approaches.

E. Data requirements.

Ⅲ. Creating More Productive Institutions.

A. University resources are not always used efficiently.

B. Unclear goals and central purpose.

C. Concept of de facto property rights.

1. Individuals manage university resources.

2. Priorities may not match those of university.

3. Asymmetric information.

4. Incentives.

Ⅳ. Setting and Communicating Goals.

A. Establishing clear goals.

B. Clarifying and disseminating goals.

C. Measuring attainment of goals.

V. Setting Incentives for Performance.

A. Schools, departments, programs, individuals.

B. Incentives meaningful for motivating behavior.

C. Alignment with goals.

D. How incentives can go wrong.

Ⅵ. Assessment of University Performance.

A. Periodic auditing.

B. Identification of areas where goals are not met.

C. Study of those areas in terms of information, incentives, capacities.

D. Making adjustments.

E. Experimentation.

F. Networking and sharing with all institutions.

(china.org.cn, July 30, 2002)

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