Abstract

PORTO, Alberto  and  DI GRESCIA, Luciano. Financiamiento de la universidad publica. Estud. Econ. [online]. 2007, vol.24, n.49, pp. 45-68. ISSN 2525-1295.

The financing of public university is an issue in permanent debate. The problem is whether the financing should be done through general taxation or through prices that recover the cost, partially or totally. The aim of this paper is to ask to what extent the provision of higher education at a subsidized price is a system of deferred payment. On the one hand, the government spends money on the provision of higher education and, on the other hand, it collects taxes on the differential of incomes between educated and non-educated citizens. What is the net result? A note on the equity of the subsidized provision is included. The paper shows that considering only labor income the recovery amounts to about 20% of the costs; this percentage increases to 50% considering total income (labor and non-labor). Increasing the rate of graduation in 20% would permit to recover an additional 10%. An important part of the cost would be recovered with a price similar to that of the private secondary school of lower price. The externalities of higher education were not considered.

Keywords : Public university financing; Subsidized provision; Deferred payment.