Open AccessNote—Sufficient Conditions for Maintaining a Balanced University Budget
Author(s) -
Arie P. Schinnar
Publication year - 1978
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.24.14.1538
Subject(s) - assertion , order (exchange) , time horizon , simple (philosophy) , range (aeronautics) , computer science , term (time) , mathematical economics , operations research , economics , mathematical optimization , mathematics , physics , finance , engineering , philosophy , epistemology , quantum mechanics , programming language , aerospace engineering
In a recent article, in Management Science, W. F. Massy [Massy, W. F. 1976. A dynamic equilibrium model for university budget planning. Management Sci. 23 (3, November) 248-256.] outlines an interesting difference equation model of the Stanford University budget system. He proceeds then to solve for first and second order (i.e., short-term) balanced budget conditions. However, Massy's assertion that the balanced budget requirement cannot be modeled "effectively" for an extended time horizon is inaccurate. This note shows that such long-range solutions are readily available from the eigenstructure of his model. We derive simple sufficient conditions for maintaining balanced university budgets. Related issues of balanced budget attainability, empirical correspondence, and policy feasibility are also discussed.education systems: planning, finance: investment, comments on