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The article deals with
the various links between public or private funding and rates
of return to education (RRE). In a first section the notion
of human capital theory as well as the notions of private, social
and fiscal RRE's are defined. The second part is devoted to
exploring the interaction between financing modes and RRE's
in a comparative-static as well as in a dynamic setting. In
the third part estimates of private, fiscal and social RRE's
are presented for the case of men in Switzerland. On the basis
of these results - with mixed public and private funding –
the impact of a totally public and private funding of direct
educational costs on RRE's is simulated in a comparative-static
manner. An estimate on dynamic reactions is made with the help
of international empirical results. The article ends with conclusions
on new directions to take to further investigate the relationship
between financing modes and RRE's. |
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