Fiscal externalities arise if subsidies to higher education raise future net fiscal revenues. We investigate in which … countries fiscal externalities provide a justification for increasing subsidies to higher education. First, we show that the …

positive externalities. Without subsidization, so the story reads, there would be an underinvestment in higher education. This … paper shortly reviews theoretical arguments, as well as empirical evidence on externalities. It is found that evidence on … positive externalities is quite limited. What is more, evidence on negative externalities of higher education has been mainly …