Resource title

Private investment in higher education: comparing alternative funding schemes

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Resource description

This paper uses an overlapping generations framework to analyze the implications of different financing regimes in the education sector for human capital formation and economic welfare. Agents privately invest in education after they have received a noisy information signal about their abilities. The incentives of the individuals to invest in education are determined by the financing regime under which the economy operates. The paper analyzes and compares three financing regimes. Under each regime, the payback obligation of an educational loan is contingent, to some extent, on an individual's future income.

Resource author

Bernhard Eckwert, Itzhak Zilcha

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26440

Resource license

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