Public education, communities and vouchers
AbstractThis paper examines the effects of school vouchers on public school quality in a simple two-community model with local provision of education. Individuals differ only by income and one community imposes a fixed exogenous costs on its residents. The equilibria of the model are stratified with the rich community providing better education with a lower tax rate. We show that the introduction of a simple voucher system can result in a Pareto improvement as an equilibrium phenomenon. This improvement brings higher education quality to both communities. However, the quality difference between communities is shown to increase in equilibrium.
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Bibliographic InfoArticle provided by Elsevier in its journal The Quarterly Review of Economics and Finance.
Volume (Year): 43 (2003)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/620167
Other versions of this item:
- Volij, Oscar & Prado, Maria, 2003. "Public Education, Communities, and Vouchers," Staff General Research Papers 10127, Iowa State University, Department of Economics.
- Maria J. Luengo-Prado & Oscar Volij, 1999. "Public Education, Communities, and Vouchers," Working Papers 99-2, Brown University, Department of Economics.
- María J. Luengo Prado & Oscar Volij, 1999. "Public Education, Communities, and Vouchers," Economic theory and game theory 008, Oscar Volij.
- I20 - Health, Education, and Welfare - - Education - - - General
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
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