Analyzing the Finnish University funding system through system-based simulation

This research explores the suitability of system-based simulation analysis for higher education (HE) policy-planning. A dynamic system model of the Finnish university funding system covering bachelor-level students is presented. The results show that the model captures the nature of the current funding system, which can be considered a zero-sum game, where the funding an individual university can only be improved at the cost of others. Based on the simulations, it seems that in the Finnish HE system increasing the importance of target time graduations in the funding model would favour the small universities. The generalizability of the used model´s and methods’ suitability outside the Finnish context is evaluated and discussed.