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Tuition Fees, as User Prices, and Private Incentives

Listed author(s):
  • George Economides
  • Apostolis Philippopoulos
  • Stelios Sakkas

This paper studies the aggregate and distributional implications of introducing tuition fees for public education services into a tax system with income and consumption taxes. The setup is a neoclassical growth model where agents differ in capital holdings. We show that the introduction of tuition fees (a) improves individual incentives to work and/or save and (b) can be both efficient and equitable. The focus is on the role of tuition fees as an extra price and how this affects private incentives.

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File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp5991.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 5991.

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Date of creation: 2016
Handle: RePEc:ces:ceswps:_5991
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