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Public Funding of Higher Education when Students and Skilled Workers are Mobile

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2009

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https://doi.org/10.1628/001522109X466527
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FinanzArchiv. Mohr Siebeck. 2009, 65(2), pp. 178-199. ISSN 0015-2218. eISSN 1614-0974. Available under: doi: 10.1628/001522109X466527

Zusammenfassung

The interregional mobility of high-skilled workers may induce an underinvestment in local public higher education when subfederal entities independently decide on education expenditures to maximize local output. This well-known result, which is due to a positive interregional spillover of local education policy when some individuals emigrate upon graduation, can reverse once taking student mobility into account. When local education policy attracts foreign students, a negative spillover takes place, and the actual discrepancy between decentralized policy and the global-output-maximizing solution depends on the relative size of the two spillovers. The paper also presents a variant of the model with local governments' objectives resting exclusively upon natives' utility.

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ISO 690LANGE, Thomas, 2009. Public Funding of Higher Education when Students and Skilled Workers are Mobile. In: FinanzArchiv. Mohr Siebeck. 2009, 65(2), pp. 178-199. ISSN 0015-2218. eISSN 1614-0974. Available under: doi: 10.1628/001522109X466527
BibTex
@article{Lange2009Publi-1862.2,
  year={2009},
  doi={10.1628/001522109X466527},
  title={Public Funding of Higher Education when Students and Skilled Workers are Mobile},
  number={2},
  volume={65},
  issn={0015-2218},
  journal={FinanzArchiv},
  pages={178--199},
  author={Lange, Thomas}
}
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