Private Investment in Higher Education: Comparing Alternative Funding Schemes

Bernhard Eckwert and Itzhak Zilcha

No 2395, CESifo Working Paper Series from CESifo

Abstract: This paper uses an overlapping generations framework to analyze the implications of different financing regimes in the education sector for human capital formation and economic welfare. Agents privately invest in education after they have received a noisy information signal about their abilities. The incentives of the individuals to invest in education are determined by the financing regime under which the economy operates. The paper analyzes and compares three financing regimes. Under each regime, the payback obligation of an educational loan is contingent, to some extent, on an individual’s future income.

Keywords: higher education; funding regimes; human capital; welfare (search for similar items in EconPapers)
JEL-codes: D31 D91 H31 I22 (search for similar items in EconPapers)
Date: 2008
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Related works:
Journal Article: Private Investment in Higher Education: Comparing Alternative Funding Schemes (2012)
Working Paper: Private Investments in Higher Education: Comparing Alternative Funding Schemes (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2395

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