Smart Technologies and Innovations in Design for Control of Technological Processes and Objects: Economy and Production: Proceeding of the International Science and Technology Conference "FarEastСon-2018"
This book features selected papers presented at The International Science and Technology Conference “FarEastCon”, which took place on October 2–4, 2018 in Vladivostok, Russian Federation.
The conference represents an informational platform for accumulating expert opinion on projects and initiatives aimed at the implementation of farsighted scientific research and development; it also allows scientific and practical achievements to be shared with a wide circle of researchers.
Sections of the conference are of interest for the broad range of experts involved in developing innovative solutions and organizing events that increase the efficiency of economic and innovative activities.
The paper deals with normative economics of education distribution. Traditionally, education is considered under positive economics of externalities, the presence of which leads to underproduction of educational services in comparison with socially optimal amount. However, the normative aspect of education distribution is also important. The distribution of education according to wiliness to pay principle leads to the consolidation of social inequality, therefore significant share of educational services is distributed through non-market mechanisms. The paper is devoted to the analysis of these mechanisms. It is shown that with the non-market distribution of educational services society may be willing to sacrifice some degree of efficiency in maximizing aggregate returns to education gains in exchange for a distribution that is perceived to be more fair; this is known as the ‘equity-efficiency trade-off’. Distribution of educational services on a meritocratic principle, which maximizes the aggregate returns to education, leads more affluent students receive more educational assets.