EconPapers    
Economics at your fingertips  
 

Efficiency and Equity Effects of Subsidies to Higher Education

Cecilia Garcia-Penalosa () and Klaus Wälde ()

Oxford Economic Papers, 2000, vol. 52, issue 4, 702-22

Abstract: We compare the efficiency and equity effects of three financing systems for higher education: the traditional tax-subsidy system, where education subsidies are financed from general taxation; loan schemes; and a graduate tax. We find that efficiency and equity targets cannot be simultaneously achieved by the traditional tax-subsidy system, and that both loan schemes and a graduate tax fare better. When education outcomes are uncertain, the graduate tax is to be preferred to a pure loan scheme because of the greater insurance provided by the former and because it tends to be preferable to an income contingent loan system. Copyright 2000 by Oxford University Press.

Date: 2000
References: Add references at CitEc
Citations View citations in EconPapers (32) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oup:oxecpp:v:52:y:2000:i:4:p:702-22

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Series data maintained by Oxford University Press ().

 
Page updated 2017-05-13
Handle: RePEc:oup:oxecpp:v:52:y:2000:i:4:p:702-22