Higher education funding: The value of information

Hatsor, Limor (2021): Higher education funding: The value of information. Published in: Journal of Public Economic Theory, Association for Public Economic Theory , Vol. 23(2), No. April 2021 (1 April 2021): pp. 318-344.

Abstract

I study the key role of information in private higher-education funding. Students receive a signal about their individual skills, and then choose a portfolio of loans. I find that information is harmful, whereas noisier (less informative) signals improve the social welfare.

• Item Type: MPRA Paper
• Language: English
• Keywords: Education finance; Higher education; Human capital; Information; Welfare
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I22 - Educational Finance ; Financial Aid

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