By Salvatore Barbaro
It has develop into a part of the traditional knowledge within the economics of schooling that subsidies to raised schooling have a regressive distributional influence. provided that rather extra young ones from wealthier households sign up for greater schooling, many economist think that those subsidies to better schooling have an undesirable distributional impression. This quantity offers new empirical proof for the cross-sectional perspective and gives an analytical framework for the longitudinal point of view. the current quantity additionally analyzes the fairness and potency results of widely-discussed investment reforms and proposes a voluntary graduate tax.
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Extra resources for Equity and Efficiency Considerations of Public Higher Education (Lecture Notes in Economics and Mathematical Systems)
The distribution of households with and without children among the income deciles. The ﬁlled bars indicate the households with children. Source: own calculations based on GSOEP data. e. through an abolition of the student aid or of a reduction of the tuition fee subsidy) is another interesting issue with respect to policy implications. 2 by subtracting the beneﬁts from the student aid, because a correlation between the grant of this cash beneﬁt and the enrollment behavior seems likely. McPherson and Shapiro (1991) investigated the overall relationship between student aid and enrollment.
As can be seen, the diﬀerences are very small. The main result is that no gainer or looser can be ascertained. The gray bars indicate that the diﬀerence to zero is not signiﬁcantly diﬀerent on a 95% level and the white bars indicates that the diﬀerence is not signiﬁcant on a 90% level. Hence, by considering this approach, the distributional eﬀect of public higher education is neither progressive nor regressive, but neutral. 6 Conclusion 35 proach, however, unveils that it can be important to ask whence the resources are squeezed out.
T represents the tax payments of the graduates (subscript A) and non-academics (subscript V ). The time index is neglected. Without further rearrangements, the equation shows that graduates can only ﬁnance the universities on their own if non-academics pay no taxes. A repayment in Gr¨ uske’s sense is only possible if the real expenditures for university teaching rise sharply or if α increases steadily. In the ﬁrst case, L has to rise steadily in all periods t, so that a complete repayment can be achieved: !
Equity and Efficiency Considerations of Public Higher Education (Lecture Notes in Economics and Mathematical Systems) by Salvatore Barbaro