This paper investigates the effects of two specific forms of intervention in the market for education: an ability test for admission to university and a subsidy to tuition fees financed through general taxation. Both these measures enhance equality of opportunity, but their equity and efficiency...

The authors study in this paper a simple alternative to price cap regulation. The mechanism, which they label 'output floor' regulation, requires the regulated firm to supply a given level of output. This rule is as simple as price cap regulation, and performs identically when the regulated firm...