IDEAS home Printed from https://ideas.repec.org/a/mhr/jinste/urnsici0932-4569(201509)1713_456qoeatn_2.0.tx_2-t.html
   My bibliography  Save this article

Quality of Education and the Number of Students: A General-Equilibrium Analysis

Author

Listed:
  • Gabrielle Demange
  • Robert Fenge
  • Silke Uebelmesser

Abstract

For a closed economy, we analyze the relation between the quality of higher education and the number of students. Within a two-period general-equilibrium model, we derive the optimal education policy - i.e., quality of and access restrictions to higher education - with observable ability, and contrast this with a setting where ability is unobservable and financial instruments are restricted to either taxes or fees. If the number of students increases with quality, then there are too many students with tax financing and the quality level is too low - and vice versa with fee financing. Results are not clear-cut when higher quality leads to a lower number of students.

Suggested Citation

  • Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2015. "Quality of Education and the Number of Students: A General-Equilibrium Analysis," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(3), pages 456-477, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201509)171:3_456:qoeatn_2.0.tx_2-t
    DOI: 10.1628/093245613X14285667557478
    as

    Download full text from publisher

    File URL: https://www.mohrsiebeck.com/en/article/quality-of-education-and-the-number-of-students-a-general-equilibrium-analysis-101628093245615x14285667557478
    Download Restriction: Fulltext access is included for subscribers to the printed version.
    File URL: https://libkey.io/10.1628/093245613X14285667557478?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andersson, Fredrik & Konrad, Kai A., 2003. "Human capital investment and globalization in extortionary states," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1539-1555, August.
    2. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 248-276.
    3. Gale, David, 1973. "Pure exchange equilibrium of dynamic economic models," Journal of Economic Theory, Elsevier, vol. 6(1), pages 12-36, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2014. "Financing Higher Education in a Mobile World," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(3), pages 343-371, June.
    2. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2020. "Competition in the quality of higher education: the impact of student mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1224-1263, October.
    3. Delpierre, Matthieu & Verheyden, Bertrand, 2014. "Student and worker mobility under university and government competition," Journal of Public Economics, Elsevier, vol. 110(C), pages 26-41.
    4. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "Financing Higher Education and Labor Mobility," CESifo Working Paper Series 2362, CESifo.
    5. Michele Boldrin, 1988. "Persistent Oscillations and Chaos in Dynamic Economic Models: Notes for a Survey," UCLA Economics Working Papers 458A, UCLA Department of Economics.
    6. Hippolyte D'Albis & Emmanuelle Augeraud-Veron, 2008. "Endogenous Retirement and Monetary Cycles," Mathematical Population Studies, Taylor & Francis Journals, vol. 15(4), pages 214-229.
    7. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(5), pages 677-707, October.
    8. Simone Valente, 2005. "Tax Policy and Human Capital Formation with Public Investment in Education," Journal of Economics, Springer, vol. 86(3), pages 229-258, December.
    9. Razin, Assaf & Sadka, Efraim & Coury, Tarek, 2003. "Trade openness, investment instability and terms-of-trade volatility," Journal of International Economics, Elsevier, vol. 61(2), pages 285-306, December.
    10. Gian Maria Milesi Ferretti & Assaf Razin, 1999. "Current Account Deficits and Capital Flows in East Asia and Latin America: Are the Early Nineties Different From the Early Eighties," NBER Chapters, in: Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues, pages 57-108, National Bureau of Economic Research, Inc.
    11. Charalambos Aliprantis & Kim Border & Owen Burkinshaw, 1996. "Market economies with many commodities," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 19(1), pages 113-185, March.
    12. Cellarier, L.L., 2023. "Flexible time horizon planning, learning and aggregate fluctuations," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 268-291.
    13. Wolfram F. Richter, 2007. "Taxing Human Capital Efficiently – The Double Dividend of Taxing Nonqualified Labour More Heavily Than Qualified Labour," Ruhr Economic Papers 0012, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. Valente, Simone, 2008. "Intergenerational transfers, lifetime welfare, and resource preservation," Environment and Development Economics, Cambridge University Press, vol. 13(1), pages 53-78, February.
    15. Hallegatte, Stéphane & Ghil, Michael, 2008. "Natural disasters impacting a macroeconomic model with endogenous dynamics," Ecological Economics, Elsevier, vol. 68(1-2), pages 582-592, December.
    16. Pazner, Elisha A. & Razin, Assaf, 1980. "Competitive efficiency in an overlapping-generation model with endogenous population," Journal of Public Economics, Elsevier, vol. 13(2), pages 249-258, April.
    17. Grossmann, Volker & Stadelmann, David, 2011. "Does international mobility of high-skilled workers aggravate between-country inequality?," Journal of Development Economics, Elsevier, vol. 95(1), pages 88-94, May.
    18. Erkki Koskela & Mikko Puhakka, 2006. "Cycles and Indeterminacy in Overlapping Generations Economies with Stone-Geary Preferences," CESifo Working Paper Series 1737, CESifo.
    19. repec:ebl:ecbull:v:5:y:2006:i:17:p:1-4 is not listed on IDEAS
    20. Austin, D. Andrew, 1999. "Social Security as an Economic Stabilization Program," Journal of Macroeconomics, Elsevier, vol. 21(2), pages 309-333, April.
    21. Weil, Philippe, 1990. "On the Possibility of Price Decreasing Bubbles," Econometrica, Econometric Society, vol. 58(6), pages 1467-1474, November.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(201509)171:3_456:qoeatn_2.0.tx_2-t. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Wolpert (email available below). General contact details of provider: https://www.mohrsiebeck.com/jite .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.