Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46453
Authors: 
Haupt, Alexander
Krieger, Tim
Lange, Thomas
Year of Publication: 
2011
Series/Report no.: 
CESifo working paper: Public Finance 3421
Abstract: 
This paper presents a model of two countries competing for a pool of students from the rest of the world (ROW). In equilibrium, one country offers high educational quality for high tuition fees, while the other country provides a low quality and charges low fees. The quality in the high quality country, the tuition fees, and the quality and tuition fee differential between the countries increase with the income prospects in ROW and the number of international students. Higher stay rates of foreign students lead to more ambiguous results. In particular, an increase in educational quality can be accompanied by a decline in tuition fees. Furthermore, international competition for students can give rise to a brain gain in ROW.
Subjects: 
higher education
student mobility
vertical quality differentiation
return migration
brain gain
JEL: 
H87
F22
I28
Document Type: 
Working Paper

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