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Educational Federalism and the Quality Effects of Tuition Fees

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  • Kemnitz, Alexander

Abstract

This 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 tuition fees fully crowd public funds under centralization and quality of university education does not improve. However, with decentralized decisions total higher education spending increases in the tuition level. Therefore, decentralization can lead to a higher quality of university education than centralization although the opposite holds when funding is restricted to be public. --

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Bibliographic Info

Paper provided by Dresden University of Technology, Faculty of Business and Economics, Department of Economics in its series Dresden Discussion Paper Series in Economics with number 08/07.

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Date of creation: 2007
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Handle: RePEc:zbw:tuddps:0807

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Postal: 01062 Dresden
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Fax: ++49 351 463 7739
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Web page: http://www.tu-dresden.de/wiwi/
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Keywords: Higher Education; Federalism; Tuition Fees;

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  1. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer, Springer, vol. 15(2), pages 199-230, April.
  2. Panu Poutvaara, 2003. "Educating Europe," Public Economics, EconWPA 0302008, EconWPA.
  3. International Monetary Fund, 1999. "Risk, Resources, and Education," IMF Working Papers 99/174, International Monetary Fund.
  4. Garcia-Penalosa, Cecilia & Walde, Klaus, 2000. "Efficiency and Equity Effects of Subsidies to Higher Education," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 702-22, October.
  5. Gradstein, Mark & Justman, Moshe, 1995. "Competitive investment in higher education: The need for policy coordination," Economics Letters, Elsevier, Elsevier, vol. 47(3-4), pages 393-400, March.
  6. Iñigo Iturbe Ormaetxe & Carmen Beviá, 2000. "Redistribution And Subsidies For Higher Education," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2000-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Frederick van der Ploeg, 2008. "Towards Evidence-based Reform of European Universities," CESifo Economic Studies, CESifo, CESifo, vol. 54(2), pages 99-120, June.
  8. Fredrik Andersson & Kai A. Konrad, 2002. "Human Capital Investment and Globalization in Extortionary States," CESifo Working Paper Series 703, CESifo Group Munich.
  9. 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.
  10. Panu Poutvaara & Vesa Kanniainen, 2000. "Why Invest in Your Neighbor? Social Contract on Educational Investment," International Tax and Public Finance, Springer, Springer, vol. 7(4), pages 547-562, August.
  11. Besley, Timothy & Coate, Stephen, 2003. "Centralized versus decentralized provision of local public goods: a political economy approach," Journal of Public Economics, Elsevier, Elsevier, vol. 87(12), pages 2611-2637, December.
  12. David E. Wildasin, 2000. "Labor-Market Integration, Investment in Risky Human Capital, and Fiscal Competition," American Economic Review, American Economic Association, American Economic Association, vol. 90(1), pages 73-95, March.
  13. Moshe Justman & Jacques-Francois Thisse, 2000. "Local Public Funding of Higher Education When Skilled Labor is Imperfectly Mobile," International Tax and Public Finance, Springer, Springer, vol. 7(3), pages 247-258, May.
  14. Creedy, John & Francois, Patrick, 1990. "Financing higher education and majority voting," Journal of Public Economics, Elsevier, Elsevier, vol. 43(2), pages 181-200, November.
  15. Frank Kupferschmidt & Berthold U. Wigger, 2006. "Öffentliche versus private Finanzierung der Hochschulbildung: Effizienz- und Verteilungsaspekte," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 7(2), pages 285-307, 05.
  16. Somanathan, Rohini, 1998. "School heterogeneity, human capital accumulation, and standards," Journal of Public Economics, Elsevier, Elsevier, vol. 67(3), pages 369-397, March.
  17. Poutvaara, Panu, 2001. "Alternative tax constitutions and risky education in a federation," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 31(2-3), pages 355-377, April.
  18. De Fraja, Gianni, 2001. "Education Policies: Equity, Efficiency and Voting Equilibrium," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(471), pages C104-19, May.
  19. Soares, Jorge, 2005. "Public education reform: Community or national funding of education?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 52(3), pages 669-697, April.
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