Abstract
Abstract: Several Lander in Germany have introduced, or are about to introduce, tuition fees for higher education. We discuss three hypotheses pertaining to (i) their distributional effects, (ii) their effect on the demand for higher education and study behaviour, and (iii) the competition and financial resources effects. We utilize a large number of empirical studies and other country experiences to assess likely effects in Germany. We conclude that fees are likely to reduce enrolment modestly and that the existing system of higher education financing is probably regressive. Tuition fees will reduce regressiveness only if they replace tax-financed funding, which conflicts with the objective of increasing resources for universities, however. We are sceptical about the latter happening.
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