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Financing Higher Education: A General Equilibrium Public Choice Approach

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  • Creedy, John
  • Francois, Patrick

Abstract

A public choice approach is used to examine the level of a tax-financed grant chosen by a cohort, allowing for a wide range of interdependencies, including the government's budget constraint. The existence of an externality is necessary, but not sufficient, for support of a grant. It is shown that a majority voting equilibrium exists. Comparative static analyses are carried out using a minimum of assumptions about the structure of the model. An increase in government expenditure for non-higher education purposes is associated.with an increase in the preferred grant, while an increase in private returns to education reduces the grant. Copyright 1993 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 69 (1993)
Issue (Month): 204 (March)
Pages: 1-9

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Handle: RePEc:bla:ecorec:v:69:y:1993:i:204:p:1-9

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Cited by:
  1. Brad R. Humphreys, 2006. "The Relationship Between Big-Time College Football and State Appropriations for Higher Education," International Journal of Sport Finance, Fitness Information Technology, vol. 1(2), pages 119-128, May.

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