This paper analyzes public intervention in education, taking into account the existence of two educational levels: basic education and college education. The government decides per capita expenditure at each level and the subsidy for college education. We explore the effects of transferring...

The belief that peers' characteristics influence the behavior and outcomes of students in school has been important in shaping public policy. How peers affect individuals depends on the educational system prevailing. I analyze two different systems: tracking and mixing, and I propose several...

There is a recent tendency toward encouraging universities to merge. This policy is based on the idea that mergers create synergy gains that enhance universities’ prestige by increasing their international visibility. However, this process may reduce competition for both research funds and...

Household characteristics may have long-run effects on individual outcomes in adulthood. For instance, individuals who lived when young in households experiencing financial problems are more likely to be poor when adults. Public intervention in education is one of the most important means by...