Funding, Competition and Quality in Higher Education


Kemnitz, Alexander


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URL: https://ub-madoc.bib.uni-mannheim.de/1001
URN: urn:nbn:de:bsz:180-madoc-10016
Document Type: Working paper
Year of publication: 2003
The title of a journal, publication series: Discussion Papers / Institut für Volkswirtschaftslehre und Statistik ; Department of Economics, Universität Mannheim
Volume: 610
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Institut für Volkswirtschaftslehre und Statistik > Discussion Papers
Subject: 330 Economics
Classification: JEL: H52 L13 I22 ,
Subject headings (SWD): Qualität , Hochschule , Hochschule / Lehre / Evaluation
Abstract: This paper explores the impact of university finance reforms on teaching quality. It is shown that the graduate tax can achieve efficiency with tuition fees administered by the government, while student grants, pure and income contingent loans are bound to fail. All options are inefficient when universities have the autonomy to set tuition fees. Then, pure loans dominate the graduate tax and are more efficient than income contingent loans unless peer group effects are strong. However, properly chosen uniform administered fees create an even higher surplus. Moreover, pure loans may make the majority off students worse of than a central assignment system with very poor quality incentives.
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Kemnitz, Alexander (2003) Funding, Competition and Quality in Higher Education. Open Access Discussion Papers / Institut für Volkswirtschaftslehre und Statistik ; Department of Economics, Universität Mannheim Mannheim 610 [Working paper]
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