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Financing higher education in an imperfect world

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  • Long, Ngo Van

Abstract

This paper explains why under laissez-faire the financing of higher education is both inefficient and inequitable. It is argued that a government-run scheme of income contingent loans (ICLs) for higher education would achieve superior outcomes. We advocate a refinement of existing ICLs schemes. Following Apps, Long and Rees (2014), the paper proposes a piecewise-linear repayment schedule that serves both equity and efficiency objectives.

Suggested Citation

  • Long, Ngo Van, 2019. "Financing higher education in an imperfect world," Economics of Education Review, Elsevier, vol. 71(C), pages 23-31.
  • Handle: RePEc:eee:ecoedu:v:71:y:2019:i:c:p:23-31
    DOI: 10.1016/j.econedurev.2018.06.004
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    References listed on IDEAS

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