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dc.contributor.authorDur, Robert A. J.en_US
dc.contributor.authorGlazer, Amihaien_US
dc.date.accessioned2009-01-28T15:54:32Z-
dc.date.available2009-01-28T15:54:32Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/19024-
dc.description.abstractWe explain why means-tested college tuition and means-tested government grants to college students can be efficient. The critical idea is that attending college is both an investment good and a consumption good. If education has a consumption benefit and tuition is uniform, the marginal rich student is less smart than some poor people who choose not to attend college, thus reducing the social returns to education and increasing the college?s cost of education. We find that competition among profit-maximizing colleges results in means-tested tuition. In addition, to maximize the social returns to education government should means-test grants. We thus provide a rationale for means-tested tuition and grants which relies neither on capital market imperfections nor on redistributive objectives.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1560en_US
dc.subject.jelI2en_US
dc.subject.jelH52en_US
dc.subject.ddc330en_US
dc.subject.keywordtuition policyen_US
dc.subject.keywordeducation subsidiesen_US
dc.subject.keywordself-selectionen_US
dc.subject.stwBildungsfinanzierungen_US
dc.subject.stwBildungsinvestitionen_US
dc.subject.stwBildungsökonomiken_US
dc.titleSubsidizing enjoyable educationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn503679909en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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