Journal article
Welfare effects of subsidizing higher education when access and quality are endogenous
Economics letters, Vol.112(1), pp.45-48
07/01/2011
DOI: 10.1016/j.econlet.2011.03.012
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.
► I examine tuition and quality decisions in subsidized public higher education. ► With fixed costs, subsidies enhance social welfare whenever tuition exceeds the marginal cost. ► A reduction in either block grants or enrollment subsidies reduces access and increases quality. ► A reduction in subsidies to quality increases access and reduces quality.
Details
- Title: Subtitle
- Welfare effects of subsidizing higher education when access and quality are endogenous
- Creators
- Gary Fethke - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Economics letters, Vol.112(1), pp.45-48
- DOI
- 10.1016/j.econlet.2011.03.012
- ISSN
- 0165-1765
- eISSN
- 1873-7374
- Publisher
- Elsevier B.V
- Number of pages
- 4
- Language
- English
- Date published
- 07/01/2011
- Academic Unit
- Business Analytics
- Record Identifier
- 9984962553202771
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