Optimal student loans and graduate tax under moral hazard and adverse selection.

Summary We thank Kathryn Spier, three anonymous referees of the RAND Journal of Economics, Christian Gollier, and Pierre-André Chiappori for very useful remarks and comments. This manuscript is the revised version of a Working Paper by the same authors, circulated in May 2012 and titled, “Equal Treatment as a Second Best: Student Loans under Asymmetric Information.” This research has been supported by a research grant of the ANR “programme blanc.” Gary-Bobo's research is also supported by Investissements d'Avenir (no. ANR-11-IDEX-0003), Labex Ecodec (no. ANR-11-LABX-0047).