• 1 Introduction
  • 2 Earlier literature
  • 3 Model
  • 4 To invest or not to invest in higher education?
  • 4.1 Options values and returns
  • 4.2 Options values and the cost of investment
  • 4.3 Option values and the probability of high returns
  • 4.4 Option values and riskiness in returns
  • 4.5 Option values and income taxes
  • 4.6 Option values and subsidies on education
  • 5 Conclusions