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The expansion of higher education and time-consistent taxation

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  • Poutvaara, Panu

Abstract

This paper analyzes educational choices and political support for subsidies to higher education in the presence of a time consistency problem in income redistribution. There may be political support for so generous subsidization that it motivates the median voter to obtain higher education. Therefore, the expansion of participation in higher education during the second half of the 20th century may have partly been driven by the aim to limit the political support for overly generous income redistribution. The paper concludes by considering the implications of globalization on the future of public financing of higher education.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): 2 (June)
Pages: 257-267

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Handle: RePEc:eee:poleco:v:27:y:2011:i:2:p:257-267

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Education Time-consistency problem Voting Subsidies to education Tax competition;

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References

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Citations

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Cited by:
  1. Anderberg, Dan, 2013. "Post-compulsory education: Participation and politics," European Journal of Political Economy, Elsevier, vol. 29(C), pages 134-150.
  2. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Economic Studies, CESifo, vol. 59(4), pages 628-649, December.
  3. Alexander Haupt, 2005. "The Evolution of Public Spending on Higher Education in a Democracy," CESifo Working Paper Series 1631, CESifo Group Munich.

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