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Redistribution And Subsidies For Higher Education

Author

Listed:
  • Iñigo Iturbe Ormaetxe

    (Universidad de Alicante)

  • Carmen Beviá

    (Universidad Autónoma de Barcelona)

Abstract
The financing of higher education through public spending imposes a transfer of resources from taxpayers to the university students and their parents. We provide an explanation for this phenomenon. Those who attend higher education will earn more income in the future and will pay more taxes. People whose children do not attend higher education, however should agree to help pay the cost of such education, providing that the taxes are sufficiently high to ensure that there will be an adequate redistribution in favor of their own children at some time in the future.

Suggested Citation

  • Iñigo Iturbe Ormaetxe & Carmen Beviá, 2000. "Redistribution And Subsidies For Higher Education," Working Papers. Serie AD 2000-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2000-15
    as

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    References listed on IDEAS

    as
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    9. Garratt, Rod & Marshall, John M, 1994. "Public Finance of Private Goods: The Case of College Education," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 566-582, June.
    10. Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-318, July.
    11. Raquel Fernandez & Richard Rogerson, 1995. "On the Political Economy of Education Subsidies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(2), pages 249-262.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    2. Bernhard Eckwert & Itzhak Zilcha, 2020. "The role of colleges within the higher education sector," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(2), pages 315-336, March.
    3. Debora Di Gioacchino & Laura Sabani & Stefano Usai, 2023. "Why does education expenditure differ across countries? The role of income inequality, human capital and the inclusiveness of education systems," Working Papers in Public Economics 236, Department of Economics and Law, Sapienza University of Roma.
    4. Rainald Borck & Silke Uebelmesser & Martin Wimbersky, 2015. "The Political Economics of Higher-Education Finance for Mobile Individuals," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(1), pages 82-105, March.
    5. Haupt, Alexander, 2012. "The evolution of public spending on higher education in a democracy," European Journal of Political Economy, Elsevier, vol. 28(4), pages 557-573.
    6. Viaene, Jean-Marie & Zilcha, Itzhak, 2013. "Public funding of higher education," Journal of Public Economics, Elsevier, vol. 108(C), pages 78-89.
    7. Alexander Kemnitz, 2007. "University Funding Reform, Competition, and Teaching Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 356-378, June.
    8. Bernhard Eckwert & Itzhak Zilcha, 2014. "Higher Education: Subsidizing Tuition versus Subsidizing Student Loans," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 835-853, December.
    9. Arbel, Yuval & Bar-El, Ronen & Tobol, Yossef, 2017. "Equal Opportunity through Higher Education: Theory and Evidence on Privilege and Ability," IZA Discussion Papers 10564, Institute of Labor Economics (IZA).
    10. von Greiff, Camilo, 2007. "Enrollment in higher education, ability and growth," Research Papers in Economics 2007:10, Stockholm University, Department of Economics.
    11. Alexander Kemnitz & Robert K. von Weizsäcker, 2003. "Bildungsreform in der Demokratie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 188-204.
    12. Limor Hatsor & Itzhak Zilcha, 2021. "Subsidizing heterogeneous higher education systems," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(2), pages 318-344, April.
    13. Carlos Renato De Melo Castro & Maria Eduarda Tannuri-Pianto, 2018. "Educação Superior Pública No Brasil: Custos, Benefícios E Efeitos Distributivos," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 64, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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    More about this item

    Keywords

    Higher Education; Taxation; Redistribution.;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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