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Effects of higher education subsidies on equity and efficiency across developmental stages

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  • Getachew, Yoseph

Abstract

This study investigates the impact of taxes and subsidies for higher education on equity–efficiency trade-offs under various phases of higher education development. A scholarship program emerges as the most effective subsidy for higher education across all developmental stages. During both early and later phases, a universal grant proves more effective than a scholarship grant in reducing inequality. At the later stages of higher education development, the enrollment rate increases for universal grants but decreases for other policies, implying that the recent shift away from universal grant schemes in the UK could lead the enrollment rate to decline.

Suggested Citation

  • Getachew, Yoseph, 2024. "Effects of higher education subsidies on equity and efficiency across developmental stages," Economic Modelling, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:ecmode:v:136:y:2024:i:c:s026499932400110x
    DOI: 10.1016/j.econmod.2024.106754
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    More about this item

    Keywords

    Education subsidy; Equity; Efficiency; Externality; Phases of higher education;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I2 - Health, Education, and Welfare - - Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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