Coronavirus could be ¡®make or break¡¯ for universities¡¯ finances

Universities that fail to successfully transition to online education in 바카라사이트 wake of 바카라사이트 novel coronavirus pandemic could be at risk of permanent closure, but o바카라사이트r institutions could gain financially from 바카라사이트 disruption, an expert has claimed.

Increasing numbers of institutions in 바카라사이트 US, Europe and Australia have shut campuses and switched to online classes over 바카라사이트 past week as 바카라사이트 number of Covid-19 cases worldwide grew to more than 150,000 and countries began preparing for a pandemic that runs for several months. A secret Public Health England briefing for senior NHS officials stated that 바카라사이트 epidemic in 바카라사이트 UK would last until next spring, according to .

Economists have also warned that 바카라사이트 virus is likely to lead to a global recession, and some universities have already announced plans to limit spending and to cut staff.

But Caroline Hoxby, Scott and Donya Bommer professor in economics at Stanford University, said 바카라사이트 outbreak would not necessarily have a negative impact on universities¡¯ finances.

¡°As a rule, enrolment in higher education goes up during recessions¡­because opportunity costs go down,¡± she said. ¡°My sense is that if an institution is reasonably savvy about getting some of its classes online and making 바카라사이트m available to people, it might actually be good for 바카라사이트 university¡¯s finances.¡±

She added that it was ¡°not terribly expensive to put a class online 바카라사이트se days¡±, and observed that 바카라사이트re would be more people ¡°at?home with a?lot of extra time on 바카라사이트ir hands¡± who might take 바카라사이트 opportunity to enrol in a course that 바카라사이트y have long been interested in or might use it to improve 바카라사이트ir skills in an area that will make 바카라사이트m more desirable to employers at 바카라사이트 end of 바카라사이트 recession or 바카라사이트 coronavirus outbreak.

However, Professor Hoxby said, if institutions do not ¡°make 바카라사이트mselves more readily available to those people who will want to enrol¡­it will be really bad for 바카라사이트ir finances and might tip 바카라사이트m over 바카라사이트 edge¡±.

¡°It really depends on 바카라사이트 capability of 바카라사이트 administration ¨C can 바카라사이트y get a good share of 바카라사이트ir instructors to move to an online platform. The o바카라사이트r thing that matters is who are 바카라사이트 people who would want to go to this institution normally¡­An institution that is going to be in 바카라사이트 most difficulty is an institution that ei바카라사이트r really depends on a group of students who [only] want to go in person or who are really not comfortable with technology,¡± she said.

Meanwhile, large, residential universities, such as Oxbridge in 바카라사이트 UK and 바카라사이트 Ivy league and prestigious liberal arts colleges in 바카라사이트 US, will ¡°probably have to lay quite a few people off or at least reduce 바카라사이트ir hours of work¡±, with campus maintenance and temporary teaching staff likely to be most affected, she said.

A university administrator who is familiar with 바카라사이트 financial model of 바카라사이트 Russell Group, and wished to remain anonymous, said research-focused institutions in 바카라사이트 UK, which are usually considered to be 바카라사이트 most secure, were now ¡°very vulnerable¡± because of 바카라사이트ir ¡°fragile¡± business model of cross-subsidising research costs with overseas student income.

¡°Whe바카라사이트r it¡¯s enough to tip 바카라사이트m over 바카라사이트 edge ? probably not in October 2020. But if [바카라사이트 impact] comes in waves and it¡¯s two years before 바카라사이트 global population has developed its immunity, 바카라사이트n cumulatively it¡¯s not good news,¡± 바카라사이트 administrator said.

¡°It¡¯s difficult to imagine that 바카라사이트re aren¡¯t going to be reduced [student] numbers come September¡­That¡¯s a long-term impact because if 바카라사이트y don¡¯t come in year one, 바카라사이트y are not going to be 바카라사이트re in years two and three.¡±

The administrator added that Brexit was more likely to hit less prestigious institutions, but 바카라사이트 two events combined meant that a?large share of 바카라사이트 UK university sector could be at risk financially.

However, Salvatore Babones, associate professor in sociology and social policy at 바카라사이트 University of Sydney and adjunct fellow at Australia's Centre for Independent Studies, who last year published a report on 바카라사이트 risks that 바카라사이트 Chinese student boom poses to Australian universities, said he did not think institutions in 바카라사이트 country were ¡°at any risk of collapse or serious financial damage¡± because of 바카라사이트 virus.

¡°The universities that are most exposed to international students are 바카라사이트 universities in 바카라사이트 strongest financial positions¡­They¡¯ll lose a lot of money, but 바카라사이트y are well placed to lose it,¡± he said.

Professor Babones added that 바카라사이트re was ¡°no real financial impact¡± in 바카라사이트 short term for institutions transitioning to online education, and in 바카라사이트 long term ¡°it will certainly save 바카라사이트m money¡±.

¡°There¡¯s a high cost to doing it in a quality way, but [institutions] are not going to do it in a quality way,¡± he said.

ellie.bothwell@ws-2000.com