This paper explores the impact of university funding reform on teaching quality competition. It shows that a graduate tax with differentiated, but state-regulated fees maximises the higher education surplus, whereas student grants as well as pure and income contingent loans do not. Fee autonomy...

This paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that tuition fees fully crowd public funds under centralization and quality of university education does not improve....

A simple Tiebout model is presented where states provide university education to both immobile and mobile students. State governments choose the quality of public universities by trading off the value of education for the local immobile student population and the costs, net of tuition revenues,...

This paper analyzes how mobility of post-graduate skilled workers and students across different countries affects the quality level of higher education and the way education is financed. We start by examining a closed economy. In the presence of imperfect credit markets the education level with...

This paper uses an overlapping generations framework to analyze the implications of different financing regimes in the education sector for human capital formation and economic welfare. Agents privately invest in education after they have received a noisy information signal about their...

Higher education, like any other commodity or service, has been viewed in a variety of economic frameworks. Little of this work, however, appears to have made any effort to define carefully the boundaries of the relevant market for higher education, which is the subject of this particular...

We study voting over higher education finance in an economy with risk averse households who are heterogeneous in income. We compare four different systems and analyse voters' choices among them: a traditional subsidy scheme, a pure loan scheme, income contingent loans and graduate taxes. Using...

This paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that a marginal introduction of tuition fees fully crowds out public funds under centralization, whereas educational...

This paper presents a model of two countries competing for a pool of students from the rest of the world (ROW). In equilibrium, one country offers high educational quality for high tuition fees, while the other country provides a low quality and charges low fees. The quality in the high quality...

The Scottish Government's Budget for 2024-25 takes place at a time of particular uncertainty about the future funding environment. UK government spending plans both for the coming year and for later years seem likely to be topped up, but when and by how much is unclear. The current UK government...