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 InfoPaper provided by Brown University, Department of Economics in its series Working Papers with number 99-2.
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: Department of Economics, Brown University, Providence, RI 02912
Other versions of this item:
- María J. Luengo Prado & Oscar Volij, 1999. "Public Education, Communities, and Vouchers," Economic theory and game theory 008, Oscar Volij.
- Volij, Oscar & Prado, Maria, 2003. "Public Education, Communities, and Vouchers," Staff General Research Papers 10127, Iowa State University, Department of Economics.
- I20 - Health, Education, and Welfare - - Education - - - General
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-03-13 (All new papers)
- NEP-EDU-2000-02-14 (Education)
- NEP-LAB-2000-03-13 (Labour Economics)
- NEP-PBE-2000-03-13 (Public Economics)
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