An economic analysis of higher education financing policies
Juan Matías Sánchez

Article Citation:

Sánchez, Juan Matías (2005). “An economic analysis of higher education financing policies”. Económica, Vol. LI(1-2): 137-184.

Abstract:

This paper develops a model in which it is possible to evaluate alternatives of higher education financing. The alternative systems under discussion are: total feeing, graduates' taxes and uniform taxes (this can be associated to the scheme presently used in the Argentina to finance the Universities).
Assessment of the alternatives is performed over welfare, based on the indicators of poverty, equality, and the average levels of utility and wealth. Likewise, the functions of welfare presented by Bentham, Rawls, Atkinson, Sen and Kakwani are also considered.
The most remarkable results are obtained through the simulation of an economy under two scenarios. In that way, the system of graduates' taxation is found to be better for welfare; whereas the system of uniform taxation only can be justified as it maximizes the number of students.

Language: English

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Author(s):

Juan Matías Sánchez: University of Rochester

JEL Classifications:

H10- Structure and Scope of Government: General
I20- Education: General
E62- Fiscal Policy
O15- Economic Development: Human Resources; Human Development; Income Distribution; Migration