IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Government Ideology and Tuition Fee Policy: Evidence from the German States

  • Björn Kauder

    ()

  • Niklas Potrafke

    ()

In January 2005 the German Supreme Court permitted the state governments to charge tuition fees. By exploiting the natural experiment, we examine how government ideology influenced the introduction of tuition fees. The results show that rightwing governments were active in introducing tuition fees. By contrast, leftwing governments strictly denied tuition fees. This pattern shows clear political alternatives in education policy across the German states: the political left classifies tuition fees as socially unjust; the political right believes that tuition fees are incentive compatible. By the end of 2014, however, there will be no tuition fees anymore: the political left won four state elections and abolished tuition fees. In Bavaria the rightwing government also decided to abolish tuition fees because it feared to become elected out of office by adhering to tuition fees. Electoral motives thus explain convergence in tuition fee policy.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-04/cesifo1_wp4205.pdf
Download Restriction: no

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4205.

as
in new window

Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:ces:ceswps:_4205
Contact details of provider: Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Panu Poutvaara, 2004. "Educating Europe," CESifo Working Paper Series 1114, CESifo Group Munich.
  2. Dwenger, Nadja & Storck, Johanna & Wrohlich, Katharina, 2009. "Do Tuition Fees Affect the Mobility of University Applicants? Evidence from a Natural Experiment," IZA Discussion Papers 4421, Institute for the Study of Labor (IZA).
  3. Potrafke, Niklas, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Munich Reprints in Economics 19278, University of Munich, Department of Economics.
  4. Poutvaara, Panu, 2004. "Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans?," Munich Reprints in Economics 19296, University of Munich, Department of Economics.
  5. Hübner, Malte, 2012. "Do tuition fees affect enrollment behavior? Evidence from a ‘natural experiment’ in Germany," Economics of Education Review, Elsevier, vol. 31(6), pages 949-960.
  6. Berger, Helge & Woitek, Ulrich, 1997. " Searching for Political Business Cycles in Germany," Public Choice, Springer, vol. 91(2), pages 179-97, April.
  7. Ursprung, Heinrich W., 2002. "Lobbying and political polarization," HWWA Discussion Papers 193, Hamburg Institute of International Economics (HWWA).
  8. Bauernschuster, Stefan & Falck, Oliver & Gold, Robert & Heblich, Stephan, 2012. "The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship," Munich Reprints in Economics 20118, University of Munich, Department of Economics.
  9. Nick Hoffmann, 2011. "Die Neuordnung der Studienfinanzierung in Großbritannien," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(09), pages 60-63, 05.
  10. Annette Alstadsæter, 2011. "Measuring the Consumption Value of Higher Education," CESifo Economic Studies, CESifo, vol. 57(3), pages 458-479, September.
  11. Niklas Potrafke, 2013. "Economic Freedom and Government Ideology across the German States," Regional Studies, Taylor & Francis Journals, vol. 47(3), pages 433-449, March.
  12. Kemnitz, Alexander, 2007. "University Funding Reform, Competition and Teaching Quality," Dresden Discussion Paper Series in Economics 01/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  13. Niklas Potrafke, 2012. "Is German domestic social policy politically controversial?," Public Choice, Springer, vol. 153(3), pages 393-418, December.
  14. Poutvaara, Panu & Kanniainen, Vesa, 2000. "Why invest in your neighbor? Social contract on educational investment," Munich Reprints in Economics 19797, University of Munich, Department of Economics.
  15. Potrafke, Niklas, 2011. "Public Expenditures on Education and Cultural Affairs in the West German States: Does Government Ideology Influence the Budget Composition?," Munich Reprints in Economics 19277, University of Munich, Department of Economics.
  16. Björn Alecke & Timo Mitze, 2012. "Studiengebühren und das Wanderungsverhalten von Studienanfängern: eine panel-ökonometrische Wirkungsanalyse," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(4), pages 357-386, November.
  17. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  18. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
  19. Wolfram Merzyn & Heinrich Ursprung, 2003. "Voter Support for Privatizing Education: Evidence on Self-Interest and Ideology," CESifo Working Paper Series 999, CESifo Group Munich.
  20. Dirk Schindler, 2011. "Tuition Fees and the Dual Income Tax: The Optimality of the Nordic Income Tax System Reconsidered," German Economic Review, Verein für Socialpolitik, vol. 12(1), pages 59-84, 02.
  21. Hans Dietrich & Hans-Dieter Gerner, 2012. "The effects of tuition fees on the decision for higher education: evidence from a german policy experiment," Economics Bulletin, AccessEcon, vol. 32(2), pages A17.
  22. James H. Stock & Mark W. Watson, 2006. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," NBER Technical Working Papers 0323, National Bureau of Economic Research, Inc.
  23. Poutvaara, Panu, 2011. "The expansion of higher education and time-consistent taxation," European Journal of Political Economy, Elsevier, vol. 27(2), pages 257-267, June.
  24. Bauernschuster, Stefan & Hener, Timo & Rainer, Helmut, 2013. "Does the Expansion of Public Child Care Increase Birth Rates? Evidence from a Low-Fertility Country," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79909, Verein für Socialpolitik / German Economic Association.
  25. Che-Yuan Liang, 2013. "Is there an incumbency advantage or cost of ruling in proportional election systems?," Public Choice, Springer, vol. 154(3), pages 259-284, March.
  26. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
  27. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
  28. Elinder, Mikael & Jordahl, Henrik, 2013. "Political preferences and public sector outsourcing," European Journal of Political Economy, Elsevier, vol. 30(C), pages 43-57.
  29. Hans Dietrich & Hans-Dieter Gerner, 2012. "The effects of tuition fees on the decision for higher education: evidence from a german policy experiment," Economics Bulletin, AccessEcon, vol. 32(3), pages 2407-2413.
  30. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_4205. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.