TITLE:
Application of the Naturally Optimised Revenue Demand in Communities NORDIC Model to Improve the Education in Sweden
AUTHORS:
Jan Stenis
KEYWORDS:
Education, Dropout Rate, Economic Instrument
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.3,
May
27,
2020
ABSTRACT: The
Naturally Optimised Revenue Demand in Communities (NORDIC) model was employed to improve
the education. Dropout is a serious problem. It affects not only the individual
who drops out but also the university and society. This article introduced a
new and practical economic instrument for improved management of dropouts,
based on the NORDIC model. The proposed
model produced constructed shadow costs to be inserted into the public accounts
to induce economic incentives to decrease the dropout rate. The resulting
shadow cost, and its impact on the PSBR, constitutes a single key factor that,
by one digit only, expresses how successful the education policy is over time.
The launched model considered the age of students who pass a BSc. This case
study showed how education in the Swedish society could be improved by application
of the NORDIC model, that is the system of cooperation between students and
government. The results point at a promising methodology for improving the
dropout rate and decreasing the qualification age by using economic
instruments. The study concludes that the NORDIC model could be used to improve
the Swedish education system and its
qualification age, particularly for BScs. Governments obtain a tool to monitor,
manage and evaluate the education sector. Possible end users include school
authorities and politicians that want a comprehensive tool to redesign the
education policy. The NORDIC model is recommended to apply to education issues to improve the
qualification age. Further research
focuses on developing algorithms for certain categories of
students.