By Salvatore Barbaro

ISBN-10: 3540261974

ISBN-13: 9783540261971

ISBN-10: 3540285156

ISBN-13: 9783540285151

It has develop into a part of the normal knowledge within the economics of schooling that subsidies to better schooling have a regressive distributional influence. provided that quite extra childrens from wealthier households sign up for better schooling, many economist imagine that those subsidies to better schooling have an undesirable distributional impression. This quantity offers new empirical facts for the cross-sectional viewpoint and offers an analytical framework for the longitudinal point of view. the current quantity additionally analyzes the fairness and potency results of widely-discussed investment reforms and proposes a voluntary graduate tax.

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Additional info for Equity and Efficiency Considerations of Public Higher Education (Lecture Notes in Economics and Mathematical Systems)

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Apparently, Gr¨ uske is aware of this problem since he writes with regard to his approach: “In order to determine the real growth rates which are at least required so that graduates pay back the received benefits through their university-related contributions, a dynamic approach is calculated for the group with the smallest net benefits: economists and social scientists. Thus, at least an unrealistic 5% real growth per year is required so that the graduates of these groups finance their received benefits by themselves” (Gr¨ uske, 1994, p.

C) The way of adding the repayments is problematic from a tax-systematic point of view. Gr¨ uske attempts to determine whether academics pay back the costs of their degree. Thus, received benefits are understood to be credits, and the repayment is determined by the general tax liability. As a consequence, a part of the tax payments is not declared as such (since it is a loan or credit repayment). This violates both, the principle of non-affectation and, through the linkage of received benefits and tax burden, also the ability-to-pay principle which only aims at the revenue side of the budget.

Since a large share of public highereducation funding consists of research and health expenditures, the amount of in-kind benefits every student/household receives cannot be measured exactly. 6%. Furthermore, we alloUsing this procedure, CE−ES cate half of the rest (distributed to non-medical faculties) as public subsidization, according to a procedure proposed by the Wissenschaftsrat5 (cf. (Wissenschaftsrat, 1997, p. 32f)). Thus, every household with a student receives an amount of DM532 per month as in-kind benefit from public funding of higher education.

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Equity and Efficiency Considerations of Public Higher Education (Lecture Notes in Economics and Mathematical Systems) by Salvatore Barbaro


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