Welfare effects of subsidizing higher education when access and quality are endogenous
Tuition and product quality are determined in cases where subsidies offset inefficiencies. Lower subsidies imply a tradeoff between access and quality. For all quality levels, social welfare increases in the subsidy whenever tuition exceeds the marginal cost.
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in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354
National Bureau of Economic Research, Inc.
- Michael J. Rizzo & Ronald G. Ehrenberg, 2003. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Working Papers 9516, National Bureau of Economic Research, Inc.
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