ERIC Number: ED151487
Record Type: RIE
Publication Date: 1977
Reference Count: 0
A Further Look at the Hansen-Weisbrod-Pechman Debate. Reprint 240.
This paper reanalyzes the Hansen-Weisbrod-Pechman debate concerning the equity effects of subsidized tuition for higher education. It presents an intergeneration model of income distribution, including educational effects. This model is used to analyze issues in the debate over equity effects. It yields a measure (equity measure) of the sensitivity of income inequality to the level of higher educational subsidy. The equity measure represents what cannot be estimated directly due to lack of data. The model also yields a net benefit measure which represents what can be estimated from available data. The main conclusion from the model is a negative one. In a simple economy, net benefit calculations do not provide a reliable indicator of the equity effects of tuition subsidies for higher education. It is not clear how this conclusion could be reversed by complicating the economy. The conclusion is a negative one because it indicates that the current feasible procedure for answering an important policy question is not reliable. Nevertheless, the model does provide a formal structure, previously lacking, for analyzing issues in this debate. (Author/AM)
Descriptors: Conceptual Schemes, Economic Factors, Higher Education, Income, Mathematical Models, Tuition
Publications Department, Institute for Research on Poverty, University of Wisconsin, Madison, Wisconsin 53706 (Free)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.
Note: Reprint from Journal of Human Resources; v12 n2 p147-63 Spr 1977