Economics of Higher Education An Analysis of Taxes Versus Fees Book

	List of figures
	List of tables
	Acknowledgements
	Preface
1	Introduction and outline	1
1.1	Subsidies for higher education	2
1.2	A simple framework of analysis	12
1.3	A majority voting equilibrium	18
1.4	Social welfare	27
1.5	Outline of the book	29
2	Some previous studies	32
2.1	Higher education models	32
2.2	External effects	34
2.3	Income inequality	36
3	A general framework of analysis	43
3.1	A cohort model	44
3.2	Majority voting	51
3.3	Some comparative statics	54
4	Majority voting with a proportional income tax	58
4.1	Educational choice of individuals	59
4.2	The government's budget constraint	63
4.3	Solving the model	68
4.4	Some numerical examples	69
5	Progressive income taxation and social welfare	81
5.1	A progressive income tax	81
5.2	Majority voting outcomes	85
5.3	Trade-off between equity and efficiency	88
5.4	Tax preferences	95
6	Majority voting over progressive taxation	103
6.1	A fixed pre-tax income distribution	104
6.2	Endogenous incomes in a single period	107
6.3	A two-period model	112
7	Transfer payments, means-testing and inequality	118
7.1	The introduction of social transfers	119
7.2	Means-testing of the grant	121
7.3	Higher education and inequality	123
8	The use of a tax surcharge	129
8.1	Modifications to the basic model	130
8.2	The distribution of rates of return	135
8.3	Comparative static results	136
8.4	A tax surcharge and inequality	142
	References	146
	Index	151