Private Investment in Higher Education: Comparing Alternative Funding Schemes
Year: 2011
Type: article
Abstract: 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.
Source: Economica
Authors: BERNHARD ECKWERT, ITZHAK ZILCHA
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Quality education
Open Access status: green
OpenAlex ID: W1591639635