The Political Economics of Higher Education Finance for Mobile Individuals
We study voting over higher education finance in an economy with two regions and two separated labor markets. Households dffer in their financial endowment and their children's ability. Non-students are immobile. Students decide where to study; they return home after graduation with exogenous probability. The voters of the two regions decide on whether to subsidize higher education costs or whether to rely on tuition fees only. We find that in equilibrium, in both regions a majority votes for subsidies when the return probability is suffi ciently small. When that probability is large, both regions opt for full tuition finance. Interestingly, the higher the return probability, the smaller are the equilibrium subsidy rates, but the larger are the numbers of exchange students.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
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.:
- Panu Poutvaara, 2004.
"Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans?,"
CESifo Economic Studies,
CESifo, vol. 50(4), pages 663-684.
- 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.
- Poutvaara, Panu, 2008.
"Public and private education in an integrated Europe: Studying to migrate and teaching to stay?,"
Munich Reprints in Economics
19802, University of Munich, Department of Economics.
- Panu Poutvaara, 2008. "Public and Private Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(3), pages 591-608, 09.
- Maria Racionero & Elena Del Rey, 2006.
"Financing schemes for higher education,"
ANU Working Papers in Economics and Econometrics
2006-460, Australian National University, College of Business and Economics, School of Economics.
- Creedy, John & Francois, Patrick, 1990. "Financing higher education and majority voting," Journal of Public Economics, Elsevier, vol. 43(2), pages 181-200, November.
- Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2012.
"Financing Higher Education in a Mobile World,"
CESifo Working Paper Series
3849, CESifo Group Munich.
- Panu Poutvaara, 2003.
- Bevia, Carmen & Iturbe-Ormaetxe, Inigo, 2002.
" Redistribution and Subsidies for Higher Education,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 104(2), pages 321-40, June.
- Iñigo Iturbe Ormaetxe & Carmen Beviá, 2000. "Redistribution And Subsidies For Higher Education," Working Papers. Serie AD 2000-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Carmen Bevia & I?go Iturbe-Ormaetxe, . "Redistribution and Subsidies for Higher Education," UFAE and IAE Working Papers 475.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Jordi Jofre-Monseny & Martin Wimbersky, 2010.
"Political economics of higher education finance,"
2010/17, Institut d'Economia de Barcelona (IEB).
- Raquel Fernandez & Richard Rogerson, 1995. "On the Political Economy of Education Subsidies," Review of Economic Studies, Oxford University Press, vol. 62(2), pages 249-262.
- Dan Anderberg & Alessandro Balestrino, 2008. "The Political Economy of Post-Compulsory Education Policy with Endogenous Credit Constraints," CESifo Working Paper Series 2304, CESifo Group Munich.
- Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
- Thomas Lange, 2009. "Public Funding of Higher Education when Students and Skilled Workers are Mobile," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 65(2), pages 178-199, June.
- JUSTMAN , Moshe & THISSE, Jacques-François, .
"Local public funding of higher education when skilled labor is imperfectly mobile,"
CORE Discussion Papers RP
1460, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Moshe Justman & Jacques-Francois Thisse, 2000. "Local Public Funding of Higher Education When Skilled Labor is Imperfectly Mobile," International Tax and Public Finance, Springer, vol. 7(3), pages 247-258, May.
- Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November.
- Garcia-Penalosa, Cecilia & Walde, Klaus, 2000. "Efficiency and Equity Effects of Subsidies to Higher Education," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 702-22, October.
- Dreher, Axel & Poutvaara, Panu, 2011.
"Foreign students and migration to the United States,"
Munich Reprints in Economics
20044, University of Munich, Department of Economics.
- Dreher, Axel & Poutvaara, Panu, 2011. "Foreign Students and Migration to the United States," World Development, Elsevier, vol. 39(8), pages 1294-1307, August.
- Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-18, July.
- Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 441-454.
- Baruch, Yehuda & Budhwar, Pawan S. & Khatri, Naresh, 2007. "Brain drain: Inclination to stay abroad after studies," Journal of World Business, Elsevier, vol. 42(1), pages 99-112, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:79717. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.