Public Policy for Efficient Education

30 Pages Posted: 23 Feb 2003

See all articles by Walter H. Fisher

Walter H. Fisher

Institute for Advanced Studies (IHS) - Department of Economics & Finance

Christian Keuschnigg

University of St. Gallen – Department of Economics (FGN-HSG); CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Abstract

We study the role of public policy in promoting efficiency in human capital accumulation. Agents accumulate human capital by allocating time to home study and school attendance. The return to time spent in school is subject to congestion. The individual also faces an aggregate externality in skill accumulation. We find that a tuition fee combined with personal stipends can correct the resulting distortions by partly shifting educational effort from schools and universities to noninstitutional forms of learning, such as home study. The dynamic effects of education policy as well as their welfare implications are also calculated in the paper.

Suggested Citation

Fisher, Walter H. and Keuschnigg, Christian, Public Policy for Efficient Education. Metroeconomica, Vol. 53, pp. 361-390, 2002. Available at SSRN: https://ssrn.com/abstract=333936

Walter H. Fisher (Contact Author)

Institute for Advanced Studies (IHS) - Department of Economics & Finance ( email )

Stumpergasse 56
A-1060 Vienna, A-1060
Austria

Christian Keuschnigg

University of St. Gallen – Department of Economics (FGN-HSG) ( email )

Varnbuelstrasse 19
St. Gallen, 9000
Switzerland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
20
Abstract Views
931
PlumX Metrics