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Author:Bevia, C.
Iturbe-Ormaetxe, I.
Title:Redistribution and subsidies for higher education
Journal:Scandinavian Journal of Economics
2002 : JUN, VOL. 104:2, p. 321-340
Index terms:Government
Subsidies
Higher education
Economic theory
Taxation
Freeterms:Government spending
Income redistribution
Models
Language:eng
Abstract:The financing of higher education through public spending imposes a transfer of resources from taxpayers to university students and their parents. An explanation is provided for this phenomenon. Those who attend institutions of higher education will earn more income in the future and will pay more taxes. People whose children do not receive higher education, however, should agree to help pay the cost of such education, providing the taxes are sufficiently high to ensure an adequate redistribution in favour of their own children at some time in the future.
SCIMA record nr: 235971
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