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The Welfare State as Piggy BankInformation, Risk, Uncertainty, and the Role of the State$
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Nicholas Barr

Print publication date: 2001

Print ISBN-13: 9780199246595

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199246599.001.0001

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Financing Higher Education: The Options

Financing Higher Education: The Options

(p.191) Chapter 13 Financing Higher Education: The Options
The Welfare State as Piggy Bank

Nicholas Barr (Contributor Webpage)

Oxford University Press

This chapter draws together economic theory and the experience of different countries, and discusses how higher education might be organized and funded in ways that are efficient and equitable, taking account of information problems and other technical problems such as externalities. Issues discussed include the role of market forces, who should pay, and the role of the state in a market‐oriented system of higher education. Countries discussed include the UK, USA, the Netherlands, Sweden, Australia, and New Zealand. The chapter also discusses misleading guides to policy design, and concludes by setting out a strategy for financing tertiary education involving tuition fees, income‐contingent student loans, and active measures to promote access.

Keywords:   externalities, higher education, income‐contingent loans, information problems, market forces, role of the state, tertiary education, tuition fees

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