Higher education funding

Many readers are no doubt currently deciding whether or not to attend higher education. If one thinks of education as a pure investment good, neo-classical economic theory asserts that the decision is based on an individual's comparison of two discounted earnings streams: those (s)he would expect to receive with and without a degree. If the earnings stream with a degree - net of the costs of the degree - is larger than that without a degree, the individual will invest in higher education.