Equity and efficiency considerations of public higher education. (Q2571105)

The author emphasizes the role of windfall gains that occur from subsidizing higher education. It is shown that the existence of windfall gains is likely to prevent subsidies from being Pareto-superior although they remain efficiency-enhancing. This book is organized as follows. Part I deals with the distributional implications which arise in the cross-sectional perspective. It presents an overview over several previous studies. Then, a new empirical analysis for Germany is provided. The author analyzes the effect of a change in the net price for higher education. Part II deals with the long-run perspective. The critical approach to the Gruske methodology implies the author's solution of the problem concerning the distributional effect among graduates and non-graduates during their lifetime. Next, there is adopt the Creedy-Francois model. Against the background of this analysis, the author discusses various proposals for a higher education funding reform. Reassuming, the main goal of this book is to assess the widely used tax-financed subsidy systems and understand the impact of different degrees and kinds of subsidization on both efficiency and equity. On the other side, there we can find a nice example of applied mathematics.