search query: @indexterm TAX POLICY / total: 92
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| Author: | Garsia-Penalosa, C. Walde, K. |
| Title: | Efficiency and equity effects of subsidies to higher education |
| Journal: | Oxford Economic Papers
2000 : OCT, VOL. 52:4, p. 702-722 |
| Index terms: | SUBSIDIES EDUCATION HIGHER EDUCATION FINANCIAL SERVICES TAX POLICY |
| Language: | eng |
| Abstract: | The motivation for this paper is the fact that the tax- subsidiary system traditionally used to finance higher education is characterized by reverse redistribution. The authors compare the efficiency and equity effects of three financing system for higher education: the traditional tax-subsidy system, where education subsidies are financed from general taxation; loan schemes; and a graduate tax. The authors find that efficiency and equity targets cannot be simultaneously achieved by the traditional tax-subsidy system, and that both schemes and a graduate tax fare better. When education outcomes are uncertain the graduate tax is to be preferred to a pure loan scheme because of the greater insurance provided by the former and because it tends to be preferable to an income contingent loan system. |
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