Choice between Higher Education Equity and Tuition Policy

Tuition policy of higher education is determined by the mapping between government effectiveness and education equity.When there is sound funding system for poor students,education equity and tuition policy can be given due consideration at the same time.High tuition and high funding policy is the optimal choice to satisfy the incentive compatibility conditions.Due to the immature funding system in China,high tuition tends to break education equity,which necessitates the government to increase financial investment to control tuition level.Given the relatively large uncertainty in the return of higher education,it is suggested that government should make differentiating tuition policy.