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STUDY-GRANT SCHEMES AND EFFORT: AN ECONOMIC MODEL (1990)

Danish-Lecker, Tikva ; Kahana, Nava

Oxford, UK : Blackwell Publishing Ltd

Bulletin of economic research 42 (1990), S. 0

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ISSN: 1467-8586

Source: Blackwell Publishing Journal Backfiles 1879-2005

Topics: Economics

Notes: This paper extends Becker's basic model on investment in human capital by introducing effort as a decision variable. Based on this extended model we consider the efficiency of two popular study-grant schemes and propose a third which unequivocally increases the student's effort and may thereby resolve the moral hazard problem created by the student's self-interested behaviour. In addition, some policy issues concerning conflicts between the students' and the policy-maker's objectives are discussed.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1111/j.1467-8586.1990.tb00672.x

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