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 nance 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.
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Bibliographic InfoPaper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2010-82.
Date of creation: 2010
Date of revision:
Education finance reform; Private schools;
Other versions of this item:
- Andrzej Kwiatkowski, 2010. "A Foundation System and a State System - Private-School Implications on Welfare and Education Expenditure," Dundee Discussion Papers in Economics 241, Economic Studies, University of Dundee.
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
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- 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.
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