An Economic Analysis of the Higher Education Contribution Scheme of the Wran Report

Bruce Chapman

Economic Analysis and Policy, 1988, vol. 18, issue 2, 171-188

Abstract: The Higher Education Contribution Scheme (HECS) of the Wran Report is a policy proposal motivated essentially by concerns related to equity and access. As such, it is a recommendation that gives relatively little weight to questions of economic efficiency and resource reallocation in higher education. This can be understood, in part, through reference to the fundamental dilemma inherent in finding a student charge system which encourages a significant expansion in the number of places. Ironically, the most strident criticisms of the Wran Report have come from those who believe that adoption of HECS will significantly decrease participation in higher education of the least advantaged. It is argued that most of these concerns have little basis.

Date: 1988
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