The benefits of deferring the payment of higher-education costs are increasingly acknowledged as a way to overcome student-borrowing constraints. Since higher education is a risky investment and students are generally risk averse, the repayment arrangements proposed in the literature frequently...

When students are unable to borrow, exams can be more efficient than fees in allocating students to schools. Optimal fees will then be zero for a monopolistic state university, but they can be positive when there is competition with a private, revenue-oriented university. The reason is that, by...

In the education literature, it is generally acknowledged that both credit and insurance for students are rationed. In order to provide a rationale for these observations, we present a model with perfectly competitive banks and risk averse students who have private information on their ability...

We study the relative preference for risk-sharing or risk-pooling income-contingent loans for higher education of risk-averse individuals who differ in their ability to benefit from education and inherited wealth. We then analyse the outcome of a majority vote between the two income-contingent...

Higher education plays an important role in determining lifetime earnings. In turn, the decision to become educated depends to a large extent on family characteristics, such as wealth and education. In this paper, we focus on the interaction between fiscal policies and educational choices when...