We introduce a new matching model to mimic two-sided exchange programs such as tuition and worker exchange, in which each firm has to avoid being a net-exporter of workers. These exchanges use decentralized markets, making it difficult to achieve a balance between exports and imports. We show...

This paper explores the impact of university funding reform on teaching quality competition. It shows that a graduate tax with differentiated, but state-regulated fees maximises the higher education surplus, whereas student grants as well as pure and income contingent loans do not. Fee autonomy...

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 marginal fiscal recovery rate, i.e. the ratio of the...

Although public appropriations to higher education and tuition rates are set under alternative arrangements, the optimal allocation is readily achievable. The decentralized linear-subsidy case produces an externality that reduces joint welfare below the centralized (first-best) case, but when...