Mehr Markt im Hochschulbereich : zur Effizienz und Gerechtigkeit von Studiengebühren

A university system has both efficiency and equity objectives. Efficiency requires the adoption of a tuition fee system that maximizes net social benefits. These benefits take two main forms: clear cut wealth benefits, and a more diffuse range of benefits to society like the improvement of social capital. The equity objective requires equal access to universities. A free market system is unlikely to achieve either of these objectives. Thus, some form of state intervention in higher education is necessary. The paper argues that both efficiency and equity can be enhanced by the implementation of a tuition fee system supported by student loans.