On Friday I made a submission to the Senate Inquiry into “The principles of the Higher Education and Research Reform Bill 2014, and related matters”. The submission was accepted and now available for public release (attached).
In summary: “The purpose of this submission is to suggest a model which combines the social equity benefits of Income-contingent Loans with a market design that is ‘incentive compatible’ through an appropriate price discovery mechanism.”
The model seeks to ensure ‘incentive compatibility’ between the social objectives of Income-Contingent Loans and market objectives of returns to investments in education being optimised. Continue reading