Public Universities, Tuition and Competition: A Tiebout Model
AbstractA simple Tiebout model is presented where states provide university education to both immobile and mobile students. State governments choose the quality of public universities by trading off the value of education for the local immobile student population and the costs, net of tuition revenues, of running the university. The quality of education and the assignment of students to universities in an efficient allocation are characterised. It is shown that decentralised decisions result in efficient choices if states are allowed to choose tuition levels freely. If tuition is capped, ine?ciently low qualities are likely to arise. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-056.
Date of creation: 2007
Date of revision:
higher education; migration; fiscal externality; club good; tuition;
Find related papers by JEL classification:
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-15 (All new papers)
- NEP-EDU-2007-12-15 (Education)
- NEP-MIG-2007-12-15 (Economics of Human Migration)
- NEP-PBE-2007-12-15 (Public Economics)
- NEP-PUB-2007-12-15 (Public Finance)
- NEP-URE-2007-12-15 (Urban & Real Estate Economics)
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