Advanced Search
MyIDEAS: Login to save this paper or follow this series

Government Ideology and Tuition Fee Policy: Evidence from the German States

Contents:

Author Info

  • Björn Kauder

    ()

  • Niklas Potrafke

    ()

Abstract

In January 2005 the German Supreme Court permitted the state governments to charge tuition fees. By exploiting the natural experiment, we examine how government ideology influenced the introduction of tuition fees. The results show that rightwing governments were active in introducing tuition fees. By contrast, leftwing governments strictly denied tuition fees. This pattern shows clear political alternatives in education policy across the German states: the political left classifies tuition fees as socially unjust; the political right believes that tuition fees are incentive compatible. By the end of 2014, however, there will be no tuition fees anymore: the political left won four state elections and abolished tuition fees. In Bavaria the rightwing government also decided to abolish tuition fees because it feared to become elected out of office by adhering to tuition fees. Electoral motives thus explain convergence in tuition fee policy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-04/cesifo1_wp4205.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4205.

as in new window
Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:ces:ceswps:_4205

Contact details of provider:
Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Email:
Web page: http://www.cesifo.de
More information through EDIRC

Related research

Keywords: tuition fees; education policy; government ideology; partisan politics;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ursprung, Heinrich W., 2002. "Lobbying and political polarization," HWWA Discussion Papers 193, Hamburg Institute of International Economics (HWWA).
  2. Kemnitz, Alexander, 2007. "University Funding Reform, Competition and Teaching Quality," Dresden Discussion Paper Series in Economics 01/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  3. Che-Yuan Liang, 2013. "Is there an incumbency advantage or cost of ruling in proportional election systems?," Public Choice, Springer, vol. 154(3), pages 259-284, March.
  4. Bjoern Alecke & Timo Mitze, 2012. "Studiengebühren und das Wanderungsverhalten von Studienanfängern: Eine panel-ökonometrische Wirkungsanalyse," Working Papers 6-2012, GEFRA - Gesellschaft fuer Finanz- und Regionalanalysen.
  5. James H. Stock & Mark W. Watson, 2008. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," Econometrica, Econometric Society, Econometric Society, vol. 76(1), pages 155-174, 01.
  6. Poutvaara, Panu, 2007. "The Expansion of Higher Education and Time-Consistent Taxation," IZA Discussion Papers 3023, Institute for the Study of Labor (IZA).
  7. Dirk Schindler, 2011. "Tuition Fees and the Dual Income Tax: The Optimality of the Nordic Income Tax System Reconsidered," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 12(1), pages 59-84, 02.
  8. Potrafke, Niklas, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Munich Reprints in Economics, University of Munich, Department of Economics 19278, University of Munich, Department of Economics.
  9. Wolfram Merzyn & Heinrich Ursprung, 2003. "Voter support for privatizing education : evidence on self-interest and ideology," Working Papers of the Research Group Heterogenous Labor 03-05, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  10. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
  11. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  12. Elinder, Mikael & Jordahl, Henrik, 2011. "Political Preferences and Public Sector Outsourcing," Working Paper Series, Research Institute of Industrial Economics 877, Research Institute of Industrial Economics.
  13. Bauernschuster, Stefan & Falck, Oliver & Gold, Robert & Heblich, Stephan, 2012. "The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship," European Journal of Political Economy, Elsevier, vol. 28(4), pages 485-497.
  14. Annette Alstadsæter, 2011. "Measuring the Consumption Value of Higher Education," CESifo Economic Studies, CESifo, CESifo, vol. 57(3), pages 458-479, September.
  15. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
  16. Niklas Potrafke, 2011. "Public Expenditures on Education and Cultural Affairs in the West German States: Does Government Ideology Influence the Budget Composition?," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 12(1), pages 124-145, 02.
  17. Panu Poutvaara, 2003. "Educating Europe," Public Economics, EconWPA 0302008, EconWPA.
  18. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 1-25, January.
  19. Potrafke, Niklas, 2012. "Is German domestic social policy politically controversial?," Munich Reprints in Economics, University of Munich, Department of Economics 19274, University of Munich, Department of Economics.
  20. Poutvaara, Panu, 2004. "Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans?," Munich Reprints in Economics, University of Munich, Department of Economics 19296, University of Munich, Department of Economics.
  21. Niklas Potrafke, 2011. "Economic Freedom and Government Ideology Across the German States," Working Paper Series of the Department of Economics, University of Konstanz 2011-41, Department of Economics, University of Konstanz.
  22. Hübner, Malte, 2012. "Do tuition fees affect enrollment behavior? Evidence from a ‘natural experiment’ in Germany," Economics of Education Review, Elsevier, vol. 31(6), pages 949-960.
  23. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 65, pages 135.
  24. Nick Hoffmann, 2011. "Die Neuordnung der Studienfinanzierung in Großbritannien," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(09), pages 60-63, 05.
  25. Hans Dietrich & Hans-Dieter Gerner, 2012. "The effects of tuition fees on the decision for higher education: evidence from a german policy experiment," Economics Bulletin, AccessEcon, vol. 32(3), pages 2407-2413.
  26. Panu Poutvaara & Vesa Kanniainen, 2000. "Why Invest in Your Neighbor? Social Contract on Educational Investment," International Tax and Public Finance, Springer, vol. 7(4), pages 547-562, August.
  27. Bauernschuster, Stefan & Hener, Timo & Rainer, Helmut, 2013. "Does the Expansion of Public Child Care Increase Birth Rates? Evidence from a Low-Fertility Country," Munich Reprints in Economics, University of Munich, Department of Economics 20154, University of Munich, Department of Economics.
  28. Berger, Helge & Woitek, Ulrich, 1997. " Searching for Political Business Cycles in Germany," Public Choice, Springer, vol. 91(2), pages 179-97, April.
  29. Nadja Dwenger & Johanna Storck & Katharina Wrohlich, 2009. "Do Tuition Fees Affect the Mobility of University Applicants?: Evidence from a Natural Experiment," Discussion Papers of DIW Berlin 926, DIW Berlin, German Institute for Economic Research.
  30. Hans Dietrich & Hans-Dieter Gerner, 2012. "The effects of tuition fees on the decision for higher education: evidence from a german policy experiment," Economics Bulletin, AccessEcon, vol. 32(2), pages A17.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Potrafke, Niklas, 2013. "Evidence on the political principal-agent problem from voting on public finance for concert halls," Munich Reprints in Economics, University of Munich, Department of Economics 19268, University of Munich, Department of Economics.
  2. Christian Bjørnskov & Niklas Potrafke, 2013. "The Size and Scope of Government in the US States: Does Party Ideology Matter?," CESifo Working Paper Series 4246, CESifo Group Munich.
  3. Björn Kauder & Niklas Potrafke, 2013. "Regierungsideologie und Studiengebühren in den deutschen Bundesländern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(10), pages 19-24, 05.
  4. Markus Reischmann, 2014. "Staatsverschuldung in Extrahaushalten: Historischer Überblick und Implikationen für die Schuldenbremse in Deutschland," Ifo Working Paper Series Ifo Working Paper No. 175, Ifo Institute for Economic Research at the University of Munich.
  5. Björn Kauder & Benjamin Larin & Niklas Potrafke, 2014. "Was bringt uns die große Koalition? Perspektiven der Wirtschaftspolitik," Ifo Working Paper Series Ifo Working Paper No. 172, Ifo Institute for Economic Research at the University of Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_4205. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.