University Graduation Dependent on Family’s Wealth, Ability and Social Status
Center for European, Governance and Economic Development (CEGE) Research No. 120
23 Pages Posted: 8 Apr 2011
Date Written: April 5, 2011
Abstract
This paper presents a model showing an incentive for a group of people to vote for higher tuition fees, even if these fees have no quality effect. The incentive is based on a non-monetary influence on utility, namely the social status or prestige of graduating. The basic assumption is that the higher the prestige is, the lower the number of people studying. In a static equilibrium, it is shown that a group of wealthier and more able people can exist that attempts to prevent others from studying.
JEL Classification: I22, J24, H52
Suggested Citation: Suggested Citation
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