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Merit Goods and Public Choice: The Case of Higher Education


  • Arcelus, F J
  • Levine, A L


This paper examines the supply and demand behavior of taxpayers as "suppliers" and students as "beneficiaries" of the higher-education process. The authors treat higher education as a merit good, and present an argument in favor of an assumption of nonreciprocal interdependence between the taxpayers and the beneficiaries. They conclude that there is no evidence to support the proposition that subsidies-in-kind, in the form of attendance at and only at a state institution, have had a retardative effect on the aggregate product ion/consumption of higher education.

Suggested Citation

  • Arcelus, F J & Levine, A L, 1986. "Merit Goods and Public Choice: The Case of Higher Education," Public Finance = Finances publiques, , vol. 41(3), pages 303-315.
  • Handle: RePEc:pfi:pubfin:v:41:y:1986:i:3:p:303-15

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    Cited by:

    1. John Creedy, 1994. "Financing higher education: public choice and social welfare," Fiscal Studies, Institute for Fiscal Studies, vol. 15(3), pages 87-108, August.

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