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Determining Public Provision of Education Services in a Sequential Education Process

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  • Romero J. Gabriel

    (Universidad de Santiago de Chile)

Abstract

This paper applies a political economy approach to the study of the endogenous determination of the size and composition of a public education budget. In this model, there are two education stages: the first is compulsory, while advanced education is optional. Parents decide on the education policy by a majority vote, children attend schools and then decide whether to get advanced education. This paper shows that even in a simple scenario where only public education is available, children's college-attendance decisions may lead the single-crossing condition to fail, which indicates that a majority voting equilibrium may not exist. In a scenario where individuals can opt for private education services, the model provides necessary and sufficient conditions for an equilibrium of the "ends-against-the-middle" type, where the poor are decisive. An implication of this result is that the opting-out feature of education may improve the welfare of the poor.

Suggested Citation

  • Romero J. Gabriel, 2012. "Determining Public Provision of Education Services in a Sequential Education Process," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-42, December.
    • Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:p:1-42:n:27
    DOI: 10.1515/1935-1682.3079
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    References listed on IDEAS

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