Abstract:

Abstract： There is a kind of nonlinear causality between the institutional change in China' s investment in higher education and the investor' s tendency to investment in education. Compared with the tendency to the government expenditure on education, the tendency to the home expenditure on education and to the enterprise expenditure on education is more sensitive to the institutional change in education. Therefore, as a provider of the institutional change, the government should be rational to treat the effect of the institutional change of investment in higher education on different educational investors. The government should, from the perspective of the efficiency and equity of investment in higher education, improves institution continuously, explore the mechanism of the educational costsharing between the government, home and enterprise, and resolve the contradiction between supply and demand in existing institutional investment in higher education, so as to have a positive interaction between the institutional change of investment in higher education and the development of socialist market economy. At the present, what the government need to do is as follows: first, in view of the unsolved contradiction of China' s dual economy, government should have a proper regulation of the existing institutional investment in higher education, and, by establishing new laws and regulations on increasing the supply of the institutional investment in higher education, perfect as soon as possible the grant system for poor students of higher education; secondly, in consideration of the present abundant private capital and the stronger will of the enterprise' s investment in higher education, the government should increase in no time the institutional arrangement of the enterprise' s investment in higher education, and, by way of the service of enterprise' s surplus capital, improve the mechanism of costsharing in higher education; thirdly, as a provider of the institutional change, the government should assume bravely the primary responsibility of the main investor in higher education, increasing funding for higher educational investment and expanding the scale of investment in education, so as to meet the public' s demand for higher education.

Key words: Key words： institutional changes in higher education; tendency to educational expenditure; nonlinear causality; statespace model