Robin Hood Effect

Most commonly applied to Universities and other forms of higher education, this is what happens when a school gives out financial aid, and charges slightly higher tuition to cover the cost. As this is repeated over the years there is extremely high tuition, which results in all of the students needing financial aid.

See also Cost Shifting and Substitute Good.

This bit of jargon has been viewed 9,636 times.

Return To Economics Jargon