Economic Model of the Individual Investment in Education

Although individual investment in education is taking on an increasing momentum in China recently, attention should still be paid to its low efficiency. Since the demand for higher education is much greater than the supply, examination competition exists with its own inevitability, which consequently makes a substantial portion of the individual investment for higher education have to be used to deal with such an examination competition. Thus has reduced the investment efficiency and impeded the optimal of the educational resources. The way to solve the problem is to expand the education scale and finance through the capital market.