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...

Several Bundesländer in Germany have or are about to introduce tuition fees for higher education. We discuss three hypotheses pertaining to (i) their distributional effects, (ii) their effect on the demand for higher education and study behavior, and (iii) the competition and financial...

Ein Universitätssystem verfolgt zwei Ziele: Effizienz und Gerechtigkeit. Effizienz verlangt nach Studiengebühren, die das Netto-Gemeinwohl maximieren. Diese Gemeinwohlvorteile haben zwei Ausprägungen: Wertschöpfungsvorteile und allgemeine gesellschaftliche Vorteile (Kultur- und...

A simple Tiebout model is presented where states provide university education to both immobile and mobile students. State governments choose the quality of public universities by trading off the value of education for the local immobile student population and the costs, net of tuition revenues,...

An increasing international applicability of a given type of education encourages students to invest more effort when studying. Governments, on the other hand, face an incentive to divert the provision of public education away from internationally applicable education toward country-specific...

We apply theories of capital market failure to ana1yzeoptima1 financing of risky higher education. In the market solution,students can only finance their education through debt. There isunderinvestment in human capita1, because some students with socia1lyprofitable investments in human capita1...

Policies need not only to be well designed to effectively address market failures, but their parameters also need to be part of agents’ information sets. This is illustrated by government student loans in the Netherlands which are intended to alleviate liquidity constraints. Despite generous...

Understanding how policy can affect university participation is important for understanding how governments can promote human capital accumulation. In this paper, we estimate the separate impacts of tuition fees and maintenance grants on the decision to enter university in the UK. We use Labour...

Seit das Bundesverfassungsgericht 2005 das Verbot von Studiengebühren aufgehoben hat, haben sieben Bundesländer Studiengebühren von bis zu 500 Euro pro Semester eingeführt. Eine Studie des DIW Berlin zeigt, dass dies zu Ausweichreaktionen der Studienbewerber geführt hat, die zahlenmäßig...

The paper takes advantage of exceptionally rich longitudinal data on the universe of labor force participants in Slovenia and simulates the working of an income contingent loan scheme to partly recover tuition costs. The simulations show that under the base variant (where the target cost...