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Welfare effects of subsidizing higher education when access and quality are endogenous

Gary Fethke

Economics Letters, 2011, vol. 112, issue 1, 45-48

Abstract: Tuition and product quality are determined in cases where subsidies offset inefficiencies. Lower subsidies imply a tradeoff between access and quality. For all quality levels, social welfare increases in the subsidy whenever tuition exceeds the marginal cost.

Keywords: Tuition; Quality; Subsidy; Welfare (search for similar items in EconPapers)
Date: 2011
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