Efficiency And Equity-oriented Pricing Studies On Independent Colleges In China

No matter developed or developing countries, their governments are all trying to find out a new program to address the inadequate supply of higher education. With country's smaller input and playing the advantages of the parent university Independent Colleges is an important complement to Higher Education. So in recent years its scale and quality have made great progress. However, the charges of Independent Colleges have become a focus of attention. Proceeding from the general theoretical analysis such as cost-sharing & compensation and pricing of higher education, this article found that the cost-sharing and compensation for "principle of revenue structure" and "principle of ability structure" are methods which can be used to determine whether pricing of Higher Education is efficient and equitable or not. In the empirical study of higher education's product pricing, we found that in our country different subjects have different judgments on the current pricing of that. Through the analysis of impact factors of Independent College of Higher Education, we found that students and parents share more higher education cost than our society and universities. In terms of Efficiency, using the Internal Rate of Return method to figure out the individual yield and find out the digit is higher than the general Social Rates of Return, so it can draw the conclusion that existing Higher Education in Independent Colleges is overpriced. Nevertheless, after the empirical studying on three aspect of the Equity, the author discover the higher education pricing resulted in unreasonable distribution of the public resources and the unfairness of educational results directly. This paper argues that:In order to coordinate the interest relationship and balance the gains and losses of all the parties, it is inevitable and necessary to establish a pricing system which consider for both Efficiency and Equity. Accordingly, based on the overseas advanced experience, this paper put forward the strategies to set up this system. In Efficiency respect, on the basis of perfecting the costing accounting system, the implementation process of government guidance price must be streamlined and potential of each sharing subjects should be explored. While in the Equity respect, it mainly should be working hard at smoothing the new students green channel, improving the aiding system of financing rural poverty, planning and preparing the coming career, enforcing tuition discount strategy and making the foundation prominent. Through above, it can find the equilibrium point of all the subjects in the Independent Colleges of Higher Education.