Three Essays in Public Economics

Three Essays in Public Economics

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The third chapter, written with Alexandra Resch and Paul Courant, studies how a social planner should allocate students and resources throughout a higher education system. We posit a distribution of student ability and a limited pool of resources and demonstrate the optimal rules for establishing, populating and funding universities. If student ability and school resources are complements, and if there is a fixed cost to establishing a school, then the optimal allocation will involve a tiered system of higher education that sorts students by ability. In contrast to previous research, we show this tiered system is optimal even in the absence of peer effects.Moreover, slow information dissemination by the Internal Revenue Service may have contributed to confusion ... The tax credit took effect on January 1, 2006, but the IRS did not officially certify the Toyota Prius or announce the size of the credit anbsp;...

Title:Three Essays in Public Economics
Author:James M. Sallee
Publisher:ProQuest - 2008


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