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Risk, Resources, and Education: Public Versus Private Financing of Higher Education

Author

Listed:
  • Berthold U. Wigger

    (International Monetary Fund)

  • Robert K. von Weizs?cker

    (International Monetary Fund)

Abstract

The paper develops a public education scheme that takes aspects of uncertainty in private educational investments explicitly into account. The social merits of public education schemes are related to the lack of markets in which students can insure against educational risks. A case is made for tuition fees that depend on expected returns of investments in education. The consideration of uncertainty provides a neglected link between educational choice, resource endowment, and productivity growth, which may serve to redefine the public role of education financing. Copyright 2002, International Monetary Fund

Suggested Citation

  • Berthold U. Wigger & Robert K. von Weizs?cker, 2001. "Risk, Resources, and Education: Public Versus Private Financing of Higher Education," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 1-6.
    • Handle: RePEc:pal:imfstp:v:48:y:2002:i:3:p:6
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    References listed on IDEAS

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    Cited by:

    1. Pavel Ciaian & Jan Pokrivcak, 2005. "Why Some Sectors of Transition Economies are less Reformed than Others? The Case of Research and Education," EERI Research Paper Series EERI_RP_2005_02, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    3. Fabian Kindermann, 2012. "Welfare Effects of Privatizing Public Education When Human Capital Investments Are Risky," Journal of Human Capital, University of Chicago Press, vol. 6(2), pages 87-123.
    4. Pavel Ciaian & Ján Pokrivčák & Dušan Drabik, 2008. "Prečo sú niektoré sektory v tranzitívnych ekonomikách menej reformované ako ostatné? prípad výskumu a vzdelávania v oblasti ekonómie [Why some sectors of transition economies are less reformed than," Politická ekonomie, Prague University of Economics and Business, vol. 2008(6), pages 819-836.
    5. Dirk Schindler & Benjamin Weigert, 2008. "Educational and Wage Risk: Social Insurance vs. Quality of Education," CESifo Working Paper Series 2513, CESifo.
    6. Kemnitz, Alexander, 2003. "Funding, Competition and Quality in Higher Education," Discussion Papers 610, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    7. Takashi Oshio & Masaya Yasuoka, 2009. "How Long Should We Stay In Education If Ability Is Screened?," Metroeconomica, Wiley Blackwell, vol. 60(3), pages 409-431, July.
    8. Alexander Kemnitz, 2007. "University Funding Reform, Competition, and Teaching Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 356-378, June.
    9. Schmidtchen, Dieter & Kirstein, Roland, 2005. "Mehr Markt im Hochschulbereich: Zur Effizienz und Gerechtigkeit von Studiengebühren," CSLE Discussion Paper Series 2005-01, Saarland University, CSLE - Center for the Study of Law and Economics.
    10. Uli KLEINWECHTER, 2010. "A Utility Function Based Approach Towards the Modeling of Migration in Village Equilibrium Models," EcoMod2010 259600092, EcoMod.
    11. Lergetporer, Philipp & Woessmann, Ludger, 2023. "Earnings information and public preferences for university tuition: Evidence from representative experiments," Journal of Public Economics, Elsevier, vol. 226(C).
    12. Dirk Schindler & Benjamin Weigert, 2008. "Insuring Educational Risk: Opportunities versus Income," CESifo Working Paper Series 2348, CESifo.
    13. Woo, Cheonsik, 2002. "Upgrading Higher Education in Korea: Context and Policy Responses," KDI Policy Studies 2002-02, Korea Development Institute (KDI).
    14. Dieter Schmidtchen, "undated". "Mehr Markt im Hochschulbereich: Zur Effizienz und Gerechtigkeit von Studiengebühren," German Working Papers in Law and Economics 2005-1-1118, Berkeley Electronic Press.
    15. Bas Jacobs & Dirk Schindler & Hongyan Yang, 2012. "Optimal Taxation of Risky Human Capital," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 908-931, September.

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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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