Risk, Resources, and Education: Public Versus Private Financing of Higher Education

21 Pages Posted: 14 Feb 2006

See all articles by Robert K. von Weizsäcker

Robert K. von Weizsäcker

Technische Universität München (TUM) - Department of Economics; National Bureau of Economic Research (NBER)

Berthold U. Wigger

University of Mannheim - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: December 1999

Abstract

This paper develops a public education scheme that takes uncertainty aspects of private educational investments explicitly into account. In the author's framework, the social merits of public education schemes are related to the lack of markets in which students can insure against educational risks. A case is made for tuition fees that depend on the expected returns of investments in education. The consideration of uncertainty provides a neglected link between educational choice, resource endowment, and productivity growth, which may serve to redefine the public role of education financing.

Keywords: Public education, tuition fees, choice under uncertainty

JEL Classification: H52, I22, D81

Suggested Citation

von Weizsäcker, Robert K. and Wigger, Berthold U., Risk, Resources, and Education: Public Versus Private Financing of Higher Education (December 1999). Available at SSRN: https://ssrn.com/abstract=880829 or http://dx.doi.org/10.2139/ssrn.880829

Robert K. Von Weizsäcker

Technische Universität München (TUM) - Department of Economics ( email )

Munich
Germany

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Berthold U. Wigger

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181 1797 (Phone)
+49 621 181 1794 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
158
Abstract Views
1,078
rank
241,688
PlumX Metrics