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The evaluation of welfare under alternative models of higher education finance

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Author Info
Geraint Johnes

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Abstract

A model is developed which allows us to examine the welfare effects of alternative methods of financing access to higher education. Under an extreme specification of the social welfare function, it is shown that it does not matter whether higher education is financed privately or through the exchequer. Under a more general specification of the social welfare function, conditions may be derived under which (a) private finance is more welfare enhancing than public finance and (b) public finance is more welfare enhancing than private finance. Empirical estimates of the social welfare function are used to draw policy conclusions.

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File URL: http://www.lums.lancs.ac.uk/publications/viewpdf/000041/
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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 000041.

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Date of creation: 2001
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Handle: RePEc:lan:wpaper:000041

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Keywords: Educational Finance;

References listed on IDEAS
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  1. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June. [Downloadable!] (restricted)
  2. Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-57, Jan.-Feb.. [Downloadable!] (restricted)
  3. Chapman, Bruce, 1997. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 738-51, May. [Downloadable!] (restricted)
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  4. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March. [Downloadable!] (restricted)
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This page was last updated on 2009-12-8.


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