chHighereducation(福利经济学牛津大学,Barr).pptVIP

Chapter 14: Higher education Organization of the chapter 1. Introduction 2. Aims 3. Methods 4. Assessment of UK higher education 5. Reform 6. Conclusion 1. Introduction This chapter, on university education, and the previous one, about school education, are twins Ch. 13 set out the strong case for public funding and public production of school education Using the same theory, this chapter concludes that the funding of universities should be shared between the taxpayer and the recipient, and that production and allocation should be substantially through market forces 2. Aims Primary objectives To transmit Knowledge and skills Attitudes and values To promote Intellectual freedom and diversity The pursuit of knowledge for its own sake Instrumental objectives Efficiency Equity 3. Methods 3.1. Theoretical arguments for intervention 1: Efficiency 1) Higher education Perfect information Why consumer sovereignty is useful in higher education Why producer sovereignty is essential Perfect competition: Students can live away from home Distance learning Externalities, in terms of Growth The transmission of values However, also substantial private benefits 2) Capital markets Why student loans? There is a collision worldwide between: The need for mass investment in human capital Fiscal constraints in the face of demographic pressures and international competition Funding higher education entirely through the tax system is: Unaffordable for fiscal reasons Inefficient, given the private benefits to recipients Regressive, since higher education is consumed mainly by people from better-off backgrounds What type of loan? Mortgage loans: monthly repayments of ￡X/month Income-contingent loans: repayments of x% of monthly earnings till the loan has been paid off Graduate tax: payments of x% of earnings until (say) retirement Income-contingent loans Income-contingent loans are Efficient Equitable They are compatible with The benefit principle The ability-to-pay principle The soci