The paper studies the optimal education policy of a budget-constrained utilitarian government. Households differ in their income and in the intellectual ability of their children; income is observed by the government, but ability is private information. Households can choose to use private...

A student's future log-wage is given by the sum of a skill premium and a random personal ‘ability’ term. Students observe only a private, noisy signal of their ability, and universities can condition admission decisions on the results of noisy tests. We assume first that universities are...

Several of the Youth Allowance eligibility criteria for independent status were subject to severe criticism in the recent Review of Australian Higher Education (2008). Specifically, it seems to be the case that many students are able to qualify for socalled “independent-at-home” financial...

This paper presents analysis of the implicit subsidies and repayment hardships of Thailand’s Student Loan Fund (SLF). Comparisons are made between the current SLF with alternative similar schemes, assuming different rates of interest and loan repayment periods. We find that the implicit...

It is well known that higher education financing involves uncertainty and risk with respect to students’ future economic fortunes, and an unwillingness of banks to provide loans because of the absence of collateral. It follows that without government intervention there will be both socially...

This paper illustrates the extent of implicit taxpayer subsidies under four possible income contingent loan (ICL) arrangements for Thailand: TICAL, implemented in 2007 only, a variant of TICAL, and two alternative ICL schemes. The implicit taxpayer subsidy calculated with respect to average...

This chapter compares and contrasts international experience with respect to higher education financing. The size and payment forms of tuition, and the different types and levels of public sector support, are illustrated for a large number of countries. A major aspect of the discussion concerns...

The changes made to Australian higher education financing in the 1996-97 Budget are arguable the most significant since the abolition of tertiary fees in 1974. This paper examines the nature and extent of the changes in terms of what they mean for students enrolling for the first time in 1997...

The public vocational education and training (VET) system is now one of the few areas in Australia’s tertiary education system where students are required to pay up-front fees without access to loan assistance. These arrangements may lead to sub-optimal educational outcomes to the extent that...

On the past decade, higher eduction has undergone a massive expansion. As a result of this growth, and the way in which it has taken place, attention needs to be given to a whole range of issues. These include : scale of higher education, funding, university/government relations, research,...