Higher Education Financing in Peru
Budget allocation efficiency and equity analysis for public universities
Overview
Comprehensive analysis of budget allocation mechanisms for Peru’s 52 public universities, examining efficiency, equity, and the impact of performance-based funding reforms.
Research Question
How can budget allocation be optimized to improve both efficiency and equity in Peru’s public higher education system?
Context
Led analytical work at Peru’s Ministry of Education (MINEDU) to inform resource allocation decisions and policy design for higher education financing.
Methodology
Efficiency Analysis: - Data Envelopment Analysis (DEA) for institutional efficiency measurement - Stochastic frontier analysis for robustness checks - Panel data regression with university fixed effects
Equity Analysis: - Concentration curves and Gini coefficients - Theil index decomposition by region and institution type - Spatial distribution analysis
Policy Evaluation: - Regression discontinuity design for reform impact assessment - Difference-in-Differences for performance-based funding effects - Integration of administrative systems (SIAF, SIGA, AIRHSP, NEXUS)
Key Findings
- Significant efficiency gaps across universities (average DEA score: 0.67)
- Budget concentration favoring Lima-based institutions
- Performance-based funding increased research output by 18%
- Regional disparities in per-student funding (up to 3x difference)
- Economies of scale present in universities with 10,000+ students
Policy Impact
Analysis directly informed budget allocation methodology used in national higher education policy, affecting $800M+ in annual public university funding.
Recommendations implemented: - New formula-based allocation system - Performance incentives for research and graduation rates - Equity adjustments for underserved regions
Citation
@techreport{medrano2023higher,
title={Higher Education Financing in Peru: Budget Allocation Efficiency and Equity Analysis for Public Universities},
author={Medrano, Maykol},
year={2023},
institution={Ministry of Education of Peru},
type={Policy Analysis},
url={https://maykolmedrano.github.io/projects/university-funding.html}
}APA Format: Medrano, M. (2023). Higher Education Financing in Peru: Budget Allocation Efficiency and Equity Analysis for Public Universities [Policy Analysis]. Ministry of Education of Peru. https://maykolmedrano.github.io/projects/university-funding.html
Technical reports and policy briefs available on institutional website.