IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v16y1988i4p425-438.html
   My bibliography  Save this article

The Optimal Size of the Tuition Tax Credit

Author

Listed:
  • F. Martinello

    (Brock University)

  • E. G. West

    (Carleton University)

Abstract

If we assume that price elasticity of demand for private schooling is 0.5, education tax credits even as low as $250 can be expected to reduce total government expenditure on education quite significantly. Recent empirical measures of such elasticities, however, are much higher. Based on these, a tax credit in the region of $1,000 would reduce expenditures by over $3.4 billion. If taxes are reduced accordingly, the gains to taxpayers would be higher to the extent of an appreciable reduction in marginal deadweight losses from the tax system.

Suggested Citation

  • F. Martinello & E. G. West, 1988. "The Optimal Size of the Tuition Tax Credit," Public Finance Review, , vol. 16(4), pages 425-438, October.
    • Handle: RePEc:sae:pubfin:v:16:y:1988:i:4:p:425-438
    DOI: 10.1177/109114218801600402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114218801600402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114218801600402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Usher, Dan, 1986. "Tax Evasion and the Marginal Cost of Public Funds," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 563-586, October.
    2. Edwin West, 1985. "The real costs of tuition tax credits," Public Choice, Springer, vol. 46(1), pages 61-70, January.
    3. Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-138, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hoyt, William H. & Lee, Kangoh, 1998. "Educational vouchers, welfare effects, and voting," Journal of Public Economics, Elsevier, vol. 69(2), pages 211-228, June.
    2. Donald E. Frey, 1991. "Demand and Supply Elasticities for Private Education: a Rejoinder," Public Finance Review, , vol. 19(3), pages 369-376, July.
    3. Cohen-Zada, Danny & Justman, Moshe, 2005. "The religious factor in private education," Journal of Urban Economics, Elsevier, vol. 57(3), pages 391-418, May.
    4. F. Martinello & E.G. West, 1991. "Education Budget Reductions Via Tax Credits: Some Further Considerations," Public Finance Review, , vol. 19(3), pages 355-368, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tiff Macklem & David Rose & Robert Tetlow, "undated". "GOVERNMENT DEBT AND DEFICITS IN CANADA: A Macro Simulation Analysis," Staff Working Papers 95-4, Bank of Canada.
    2. Liqun Liu, 2006. "Combining Distributional Weights and the Marginal Cost of Funds," Public Finance Review, , vol. 34(1), pages 60-79, January.
    3. Helmuth Cremer & Firouz Gahvari, 1999. "Excise Tax Evasion, Tax Revenue, and Welfare," Public Finance Review, , vol. 27(1), pages 77-95, January.
    4. Christos Constantatos & Edwin G. West, 1991. "Measuring Returns from Education: Some Neglected Factors," Canadian Public Policy, University of Toronto Press, vol. 17(2), pages 127-138, June.
    5. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    6. Tran, Chung & Wende, Sebastian, 2021. "On the marginal excess burden of taxation in an overlapping generations model," Journal of Macroeconomics, Elsevier, vol. 70(C).
    7. Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2016. "Public Provision of Private Goods, Self-Selection, and Income Tax Avoidance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 666-692, October.
    8. Hanson, Kenneth & Somwaru, Agapi, 2003. "Distributional Effects of U.S. Farm Commodity Programs: Accounting for Farm and Non-Farm Households," Conference papers 331120, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Yoonkyo Cho & Taehwan Kim & Jaewhak Roh, 2021. "An analysis of the effects of electronic commerce on the Korean economy using the CGE model," Electronic Commerce Research, Springer, vol. 21(3), pages 831-854, September.
    10. Mihir A. Desai & James R. Hines, Jr., 1999. "Excess Capital Flows and the Burden of Inflation in Open Economies," NBER Chapters, in: The Costs and Benefits of Price Stability, pages 235-272, National Bureau of Economic Research, Inc.
    11. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669, Elsevier.
    12. Shouqiang Wang & Peng Sun & Francis de Véricourt, 2016. "Inducing Environmental Disclosures: A Dynamic Mechanism Design Approach," Operations Research, INFORMS, vol. 64(2), pages 371-389, April.
    13. Javier Ferri & Antonio G. Gómez-Plana & Joan Martín-Montaner, "undated". "International inmigration and mobility across sectors: an exploration of alternative scenarios for Spain," Studies on the Spanish Economy 124, FEDEA.
    14. Daphne Chen & Shi Qi & Don Schlagenhauf, 2018. "Corporate Income Tax, Legal Form of Organization, and Employment," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(4), pages 270-304, October.
    15. Go, Delfin S. & Kearney, Marna & Robinson, Sherman & Thierfelder, Karen, 2004. "An Analysis of South Africa's Value Added Tax," Conference papers 331274, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. John Freebairn, 1995. "Reconsidering the Marginal Welfare Cost of Taxation," The Economic Record, The Economic Society of Australia, vol. 71(2), pages 121-131, June.
    17. Takanori Adachi & Michal Fabinger, 2017. "Multi-Dimensional Pass-Through, Incidence, and the Welfare Burden of Taxation in Oligopoly," CIRJE F-Series CIRJE-F-1040, CIRJE, Faculty of Economics, University of Tokyo.
    18. Dan Usher, 2006. "The Marginal Cost of Public Funds Is the Ratio of Mean Income to Median Income," Public Finance Review, , vol. 34(6), pages 687-711, November.
    19. Donald Bruce & William Fox & Matthew Murray, 2003. "To Tax Or Not To Tax? The Case Of Electronic Commerce," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 25-40, January.
    20. Labandeira, Xavier & Labeaga, José M. & Rodríguez, Miguel, 2009. "An integrated economic and distributional analysis of energy policies," Energy Policy, Elsevier, vol. 37(12), pages 5776-5786, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:16:y:1988:i:4:p:425-438. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.