De Fraja, Gianni; Valbonesi, Paola - C.E.P.R. Discussion Papers - 2008
chosen by a welfare maximising government. It studies a general equilibrium model where universities carry out research and … university chooses its tuition fee to maximise the amount of resources it can devote to research. Research bestows an externality … research. We find that government concentrates research more than the private market would, but less than it would like to do …