Risk, Resources, and Education—Public Versus Private Financing of Higher Education

Author/Editor:

International Monetary Fund

Publication Date:

December 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper develops a public education scheme that takes uncertainty aspects of private educational investments explicitly into account. In the author’s framework, the social merits of public education schemes are related to the lack of markets in which students can insure against educational risks. A case is made for tuition fees that depend on the expected returns of investments in education. The consideration of uncertainty provides a neglected link between educational choice, resource endowment, and productivity growth, which may serve to redefine the public role of education financing.

Series:

Working Paper No. 99/174

Subject:

English

Publication Date:

December 1, 1999

ISBN/ISSN:

9781451858679/1018-5941

Stock No:

WPIEA1741999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

21

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