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Income Contingent Loans as a General Risk Management Instrument

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Contemporary Issues in Microeconomics

Part of the book series: International Economic Association Series ((IEA))

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Abstract

The apparent success of income contingent loans (ICL) in higher education financing has been associated with a plethora of studies examining the prospects for ICL in many other areas of social and economic policy.1 This paper gives brief consideration to several of these studies in order to illustrate the disparate nature of possibilities and to help set the scene for the development of a broad ICL theoretical framework.

This paper draws on Bruce Chapman (2014), ‘Income Contingent Loans: Background’, in Bruce Chapman, Timothy Higgins and Joseph E. Stiglitz (eds), Income Contingent Loans: Theory, Practice and Prospects, Basingstoke and New York: Palgrave Macmillan.

The author acknowledges the financial contribution of Dhurakij Pundit University and the Australian Research Council. Kiatanantha Lounkaew, Timothy Higgins, John Quiggin and Joseph Stiglitz offered constructive inputs. The author is responsible for all errors and omissions.

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© 2016 Bruce Chapman

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Chapman, B. (2016). Income Contingent Loans as a General Risk Management Instrument. In: Stiglitz, J.E., Guzman, M. (eds) Contemporary Issues in Microeconomics. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137529718_8

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