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has been cited by the following article:

• 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.