Policy Reforms and the Theory of Education Finance

Discusses the current system of higher education funding in the UK, and proposals for its reform. Possible reforms include methods whereby the direct burden of paying for tuition is shifted from government and towards students, which raises the question of how much of the total burden should be shifted. To examine this issue, constructs a general equilibrium model which seeks to explain the determination of occupation-specific wages and the allocation of work between three occupations: labouring, management and teaching. Derives comparative statics and assesses the impact of alternative finding arrangements for post-compulsory education.