In this paper we provide evidence for the impact of public funding on enrolment of students in college. We use a panel for European countries and apply instrumental variables techniques to find that public funding for schooling; regardless at what level; does increase college enrolment alike...

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...