A Foundation System and a State System - Private-School Implications on Welfare and Education Expenditure
AbstractThis paper examines the effects of two different education financing systems: a foundation system and a state system on the level and distribution of resources devoted to education in the presence of private schools. We use political economy approach where households differ in their level of income, and the central tax rate used to finance education is determined by a majority vote. Our analysis focuses on implications of allowing for a private-school option. To evaluate the importance of private schools we develop a computational model and calibrate it using USA data. The results reveal that the private school option is very important quantitatively in terms of welfare, total resources spent on education and equity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 241.
Length: 33 pages
Date of creation: Oct 2010
Date of revision:
Education finance reform; Private schools;
Other versions of this item:
- Kwiatkowski, Andrzej, 2010. "A Foundation System and a State System - Private-School Implications on Welfare and Education Expenditure," SIRE Discussion Papers 2010-82, Scottish Institute for Research in Economics (SIRE).
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-CMP-2010-10-23 (Computational Economics)
- NEP-EDU-2010-10-23 (Education)
- NEP-LAB-2010-10-23 (Labour Economics)
- NEP-URE-2010-10-23 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrzej Kwiatkowski).
If references are entirely missing, you can add them using this form.