Why should the Czech Republic reform its current policy of financing higher education?
|Author:||Bc. Pavlína Kadlecová|
|Year:||2014 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
The Czech Republic has traditionally financed higher educati
on out of general
taxation and in the form of
funding. This system has led to inef-
ficient allocation of funds, long-term underfunding and decr
easing quality of
education. We present three alternative financing schemes wh
ich rely on larger
contribution from students: pure student loan, risk-shari
loan and risk-pooling income-contingent loan. By using a the
and calibrating it to the Czech reality, we show that financin
g schemes have
significant impact on higher education participation and the
quality of accepted
students. While pure loan and risk-pooling induce optimal pa
ternational experience suggests that risk-sharing is the m
ore feasible option.