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The band marches on... but with fewer resources

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  • Kathy Parkison

Abstract

Consumers have split preferences for education between the types of education services that they would like to experience and the types of educational services that they want for others using the system. The primary or secondary educational institution acts as a complete agent to provide services in an environment where a smaller group of taxpayers actually funds the institution. The taxpaying group has split preferences for the funding of these services. The budget is endogenous and depends on the choices of educational services offered by the institution. The focus is, therefore, on the division of the budget of the institution between knowledge-based activities and spillover activities. Educational institutions emphasize the knowledge-based activities and the spillover activities are left underfunded. Copyright International Atlantic Economic Society 1997

Suggested Citation

  • Kathy Parkison, 1997. "The band marches on... but with fewer resources," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 288-298, August.
    • Handle: RePEc:kap:iaecre:v:3:y:1997:i:3:p:288-298:10.1007/bf02294915
    DOI: 10.1007/BF02294915
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    References listed on IDEAS

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    1. Clark, Derek & Olsen, Jan Abel, 1994. "Agency in health care with an endogenous budget constraint," Journal of Health Economics, Elsevier, vol. 13(2), pages 231-251, July.
    2. Anthony J. Culyer (ed.), 1991. "The Economics Of Health," Books, Edward Elgar Publishing, volume 0, number 541.
    3. Sen, Amartya K, 1979. "Personal Utilities and Public Judgements: Or What's Wrong with Welfare Economics?," Economic Journal, Royal Economic Society, vol. 89(355), pages 537-558, September.
    4. Tony Culyer, 1991. "Health, health expenditures and equity," Working Papers 083chedp, Centre for Health Economics, University of York.
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