Carregant...
Fitxers
Tipus de document
Document de treballData de publicació
Llicència de publicació
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/115514
Choosing the type of income-contingent loan: risk-sharing versus risk-pooling
Títol de la revista
Director/Tutor
ISSN de la revista
Títol del volum
Recurs relacionat
Resum
This paper analyses the choice between risk-sharing and risk-pooling income-contingent loans for higher education of risk-averse individuals who differ in their ability to benefit from education and inherited wealth. The paper identifies the possible outcomes of a majority vote between the two income-contingent schemes and provides several examples where the risk-pooling income contingent loan is preferred. The paper then discusses the implications on participation and voting outcomes if successful graduates are mobile and provides examples where the riskpooling incomecontingent loan remains being preferred. Risk-pooling schemes can however be prone to adverse selection problems, particularly if students are mobile. The paper explores the implications of allowing students to opt out of the riskpooling income-contingent loan for a pure loan. It shows that risk-pooling income-contingent loans can be sustained even when some students opt out.
Matèries
Matèries (anglès)
Citació
Citació
REY CANTELI, Elena del, RACIONERO, María. Choosing the type of income-contingent loan: risk-sharing versus risk-pooling. _IEB Working Paper 2014/07_. [consulta: 24 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/115514]