Educational Federalism and the Quality Effects of Tuition Fees
AbstractThis paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that a marginal introduction of tuition fees fully crowds out public funds under centralization, whereas educational quality improves under decentralization. However, if the government has full discretion about the tuition fee level, centralization leads to the efficient quality, fully extracting the income gains from the graduates, while decentralization typically induces inefficiently low spending levels.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3193.
Date of creation: 2010
Date of revision:
higher education; federalism; tuition fees;
Other versions of this item:
- Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
- Kemnitz, Alexander, 2007. "Educational Federalism and the Quality Effects of Tuition Fees," Dresden Discussion Paper Series in Economics 08/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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