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. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 59 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/137573/ |
| Abstract: | Abstract The Czech Republic has traditionally financed higher educati on out of general taxation and in the form of per capita 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 ng income-contingent loan and risk-pooling income-contingent loan. By using a the oretical model 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 rticipation, in- ternational experience suggests that risk-sharing is the m ore feasible option. |
