The Political Economics of Higher-Education Finance for Mobile Individuals
- We study voting over higher-education finance in an economy with two regions and two separated labor markets. Households differ in their financial endowment and their children's ability. Nonstudents are immobile. Students decide where to study; they return home after graduation with exogenous probability. The voters of the two regions decide on whether to subsidize higher-education costs or to rely on tuition fees only. We find that in equilibrium, in both regions a majority votes for subsidies when the return probability is sufficiently small. When that probability is large, both regions opt for full tuition finance.
| Author details: | Rainald BorckORCiDGND, Silke Übelmesser, Martin Wimbersky |
|---|---|
| DOI: | https://doi.org/10.1628/001522115X14206439673215 |
| ISSN: | 0015-2218 |
| ISSN: | 1614-0974 |
| Title of parent work (English): | FinanzArchiv |
| Publisher: | Mohr Siebeck |
| Place of publishing: | Tübingen |
| Publication type: | Article |
| Language: | English |
| Year of first publication: | 2015 |
| Publication year: | 2015 |
| Release date: | 2017/03/27 |
| Tag: | financing scheme; higher education; mobility; voting |
| Volume: | 71 |
| Issue: | 1 |
| Number of pages: | 24 |
| First page: | 82 |
| Last Page: | 105 |
| Funding institution: | Deutsche Forschungsgemeinschaft [1142] |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| Peer review: | Referiert |
