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The cost of fiscal subsidies to higher education students in South Africa: A comparison between 2000 and 2006


  • Pierre de Villiers

    () (Department of Economics, University of Stellenbosch)


In this analysis the expenditure (subsidy) on higher education institutions (HEIs) in South Africa is compared for 2000 and 2006. The analysis was done with headcounts of students as well as with full-time equivalent student numbers. A second method was followed where a distinction was made between the number of students enrolled in the social sciences and those enrolled in the natural sciences. It is found that Subsidies of the African, coloured and Indian students in general deteriorated slightly compared to the subsidy levels of whites. However, with the calculations for contact full-time equivalent students according to field of study it was found that either the other racial groups’ relative situation improved over time or they received higher subsidies than the white group.

Suggested Citation

  • Pierre de Villiers, 2009. "The cost of fiscal subsidies to higher education students in South Africa: A comparison between 2000 and 2006," Working Papers 13/2009, Stellenbosch University, Department of Economics.
  • Handle: RePEc:sza:wpaper:wpapers85

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    References listed on IDEAS

    1. Mauricio Larraín, 2005. "Monetary Policy and Long-Term Interest Rates in Chile," Working Papers Central Bank of Chile 335, Central Bank of Chile.
    2. Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
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    4. Mishkin, Frederic S., 1998. "International Experiences With Different Monetary Policy Regimes," Seminar Papers 648, Stockholm University, Institute for International Economic Studies.
    5. Svensson, Lars E O, 1994. "Estimating and Interpreting Forward Interest Rates: Sweden 1992-4," CEPR Discussion Papers 1051, C.E.P.R. Discussion Papers.
    6. H.a. Mitchell-innes & M.j. Aziakpono & A.p. Faure, 2007. "Inflation Targeting And The Fisher Effect In South Africa: An Empirical Investigation," South African Journal of Economics, Economic Society of South Africa, vol. 75(4), pages 693-707, December.
    7. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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    More about this item


    Government subsidies; National government expenditure; Education;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I2 - Health, Education, and Welfare - - Education

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