This paper considers the decentralized funding of public universities in a federation when students and graduates are mobile. In particular, I discuss whether local governments should be given the right to differentiate tuition fees between in-state and out-of-state students. I develop a model...

I use the introduction of tuition fees in seven out of the sixteen German states in 2007 as a natural experiment to identify the effects of tuition fees on enrollment probabilities of German high-school graduates. Based on information on enrollment decisions for the entire population of...

In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled sector, successful graduation depends both on individual effort to study and on public resources. We show that insuring the present risks is a dichotomic task: Wage risk is...