Resource title

Public Universities, Tuition and Competition: A Tiebout Model

Resource image

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Resource description

A simple Tiebout model is presented where states provide university education to both immobile and mobile students. State governments choose the quality of public universities by trading off the value of education for the local immobile student population and the costs, net of tuition revenues, of running the university. The quality of education and the assignment of students to universities in an efficient allocation are characterised. It is shown that decentralised decisions result in efficient choices if states are allowed to choose tuition levels freely. If tuition is capped, ine?ciently low qualities are likely to arise.

Resource author

Robert Schwager

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24630

Resource license

Adapt according to the presented license agreement and reference the original author.