IDEAS home Printed from https://ideas.repec.org/p/fip/fedlwp/2011-032.html
   My bibliography  Save this paper

Why do education vouchers fail at the ballot box?

Author

Listed:

Abstract

We compare a uniform voucher regime against the status quo mix of public and private education, focusing on the distribution of welfare gains and losses across house- holds by income. We argue that the topping-up option available under uniform vouchers is not sufficiently valuable for the poorer households, so the voucher regime is defeated at the polls. Our result depends critically on the opting-out feature in the current system.

Suggested Citation

  • Peter Bearse & Buly A. Cardak & Gerhard Glomm & B. Ravikumar, 2011. "Why do education vouchers fail at the ballot box?," Working Papers 2011-032, Federal Reserve Bank of St. Louis.
  • Handle: RePEc:fip:fedlwp:2011-032
    as

    Download full text from publisher

    File URL: http://research.stlouisfed.org/wp/2011/2011-032.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Merzyn, Wolfram & Ursprung, Heinrich W., 2005. "Voter support for privatizing education: evidence on self-interest and ideology," European Journal of Political Economy, Elsevier, vol. 21(1), pages 33-58, March.
    2. Thomas J. Nechyba, 1999. "School Finance Induced Migration and Stratification Patterns: The Impact of Private School Vouchers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 5-50, January.
    3. Brunner, Eric & Sonstelie, Jon, 2003. "Homeowners, property values, and the political economy of the school voucher," Journal of Urban Economics, Elsevier, vol. 54(2), pages 239-257, September.
    4. Carnoy, Martin, 1997. "Is Privatization through Education Vouchers Really the Answer? A Comment," The World Bank Research Observer, World Bank, vol. 12(1), pages 105-116, February.
    5. Bearse, Peter & Cardak, Buly A. & Glomm, Gerhard & Ravikumar, B., 2013. "Why do education vouchers fail at the ballot box?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 26-37.
    6. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
    7. Raquel Fernandez & Richard Rogerson, 2003. "Equity and Resources: An Analysis of Education Finance Systems," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 858-897, August.
    8. Gerhard Glomm & B. Ravikumar, 1998. "Opting out of publicly provided services: A majority voting result," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(2), pages 187-199.
    9. Hoyt, William H. & Lee, Kangoh, 1998. "Educational vouchers, welfare effects, and voting," Journal of Public Economics, Elsevier, vol. 69(2), pages 211-228, June.
    10. Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March.
    11. Borck, Rainald & Wrohlich, Katharina, 2011. "Preferences for childcare policies: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 27(3), pages 436-454, September.
    12. Edwin G. West & Zhiqi Chen, 2000. "Selective versus Universal Vouchers: Modelling Median Voter Preferences in Education," American Economic Review, American Economic Association, vol. 90(5), pages 1520-1534, December.
    13. Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
    14. 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.
    15. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    16. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
    17. Bearse, Peter & Glomm, Gerhard & Ravikumar, B., 2000. "On the political economy of means-tested education vouchers," European Economic Review, Elsevier, vol. 44(4-6), pages 904-915, May.
    18. West, Edwin G, 1997. "Education Vouchers in Principle and Practice: A Survey," The World Bank Research Observer, World Bank, vol. 12(1), pages 83-103, February.
    19. Cohen-Zada, Danny & Justman, Moshe, 2005. "The religious factor in private education," Journal of Urban Economics, Elsevier, vol. 57(3), pages 391-418, May.
    20. James, Estelle, 1987. "The public/private division of responsibility for education: An international comparison," Economics of Education Review, Elsevier, vol. 6(1), pages 1-14, February.
    21. Daniel H. Cooper, 2009. "Impending U.S. spending bust?: the role of housing wealth as borrowing collateral," Public Policy Discussion Paper 09-9, Federal Reserve Bank of Boston.
    22. Rangazas, Peter, 1995. "Vouchers and Voting: An Initial Estimate Based on the Median Voter Model," Public Choice, Springer, vol. 82(3-4), pages 261-279, March.
    23. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November.
    24. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    25. Anonymous, 2009. "Abstract of the discussion," British Actuarial Journal, Cambridge University Press, vol. 15(1), pages 202-217, 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. Ahlfeldt, Gabriel M. & Maennig, Wolfgang & Mueller, Steffen Q., 2022. "The generation gap in direct democracy: Age vs. cohort effects," European Journal of Political Economy, Elsevier, vol. 72(C).
    2. Buckley, Neil & Cuff, Katherine & Hurley, Jeremiah & Mestelman, Stuart & Thomas, Stephanie & Cameron, David, 2016. "Should I stay or should I go? Exit options within mixed systems of public and private health care finance," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 62-77.
    3. Bearse, Peter & Cardak, Buly A. & Glomm, Gerhard & Ravikumar, B., 2013. "Why do education vouchers fail at the ballot box?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 26-37.
    4. Tanaka, Ryuichi & Farre, Lidia & Ortega, Francesc, 2018. "Immigration, assimilation, and the future of public education," European Journal of Political Economy, Elsevier, vol. 52(C), pages 141-165.
    5. Cardak, Buly A. & Glomm, Gerhard & Ravikumar, B., 2020. "Majority voting in a model of means testing," European Economic Review, Elsevier, vol. 122(C).
    6. Neil Buckley & Katherine Cuff & Jeremiah Hurley & Stuart Mestelman & Stephanie Thomas & David Cameron, 2014. "Should I Stay or Should I Go? Public Provision of a Private Good with an Exit Option," Department of Economics Working Papers 2014-01, McMaster University.
    7. Andrew A. Samwick, 2013. "Donating the Voucher: An Alternative Tax Treatment of Private School Enrollment," Tax Policy and the Economy, University of Chicago Press, vol. 27(1), pages 125-160.
    8. Yeşilırmak, Muharrem, 2016. "A quantitative analysis of Turkish Private Education Reform," European Journal of Political Economy, Elsevier, vol. 45(C), pages 76-88.
    9. Xiaoxiao Li & Wen Mao & Peter A. Zaleski & Catherine Kenny, 2023. "The Ends Against the Middle: The Case of Municipal Golf," Public Finance Review, , vol. 51(3), pages 339-367, May.
    10. Buckley, Neil & Cuff, Katherine & Hurley, Jeremiah & Mestelman, Stuart & Thomas, Stephanie & Cameron, David, 2015. "Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 177-196.

    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. Peter Bearse & Buly A. Cardak & Gerhard Glomm & B. Ravikumar, 2009. "Why do Education Vouchers Fail?," CAEPR Working Papers 2009-014, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    2. Cohen-Zada, Danny & Justman, Moshe, 2005. "The religious factor in private education," Journal of Urban Economics, Elsevier, vol. 57(3), pages 391-418, May.
    3. Akyol, Metin, 2016. "Do educational vouchers reduce inequality and inefficiency in education?," Economics of Education Review, Elsevier, vol. 55(C), pages 149-167.
    4. Epple, Dennis & Romano, Richard, 2014. "On the political economy of educational vouchers," Journal of Public Economics, Elsevier, vol. 120(C), pages 62-73.
    5. Dennis Epple & Richard E. Romano & Miguel Urquiola, 2017. "School Vouchers: A Survey of the Economics Literature," Journal of Economic Literature, American Economic Association, vol. 55(2), pages 441-492, June.
    6. Cardak, Buly A., 2005. "Education Vouchers, Growth, And Income Inequality," Macroeconomic Dynamics, Cambridge University Press, vol. 9(1), pages 98-121, February.
    7. 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.
    8. Gradstein, Mark & Justman, Moshe, 2005. "The melting pot and school choice," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 871-896, June.
    9. Sinan Sarpça & Kuzey Yılmaz & Eric Hanushek, 2007. "School Choice: Traditional Mechanisms and Extending the Poor's Ability to Choose," Koç University-TUSIAD Economic Research Forum Working Papers 0709, Koc University-TUSIAD Economic Research Forum.
    10. Alexander Kemnitz & Robert K. von Weizsäcker, 2003. "Bildungsreform in der Demokratie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 188-204.
    11. Merzyn, Wolfram & Ursprung, Heinrich W., 2005. "Voter support for privatizing education: evidence on self-interest and ideology," European Journal of Political Economy, Elsevier, vol. 21(1), pages 33-58, March.
    12. Yeşilırmak, Muharrem, 2016. "A quantitative analysis of Turkish Private Education Reform," European Journal of Political Economy, Elsevier, vol. 45(C), pages 76-88.
    13. Cohen-Zada, Danny & Sander, William, 2008. "Religion, religiosity and private school choice: Implications for estimating the effectiveness of private schools," Journal of Urban Economics, Elsevier, vol. 64(1), pages 85-100, July.
    14. 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.
    15. Daniel Montolio & Amedeo Piolatto & Luca Salvadori, 2022. "Financing public education when agents have retirement concerns," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1559-1580, October.
    16. Borck, Rainald & Wrohlich, Katharina, 2011. "Preferences for childcare policies: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 27(3), pages 436-454, September.
    17. Daniel Montolio (University of Barcelona (UB) and Barcelona Institute of Economics (IEB)) & Amedeo Piolatto (University of Barcelona (UB) and Barcelona Institute of Economics (IEB)), 2011. "Financing public education when altruistic agents have retirement concerns," Working Papers in Economics 268, Universitat de Barcelona. Espai de Recerca en Economia.
    18. Hanushek Eric A & Sarpça Sinan & Yilmaz Kuzey, 2011. "Private Schools and Residential Choices: Accessibility, Mobility, and Welfare," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-34, August.
    19. Yeşilırmak, Muharrem, 2019. "Bonus pay for teachers, spatial sorting, and student achievement," European Journal of Political Economy, Elsevier, vol. 59(C), pages 129-158.
    20. Buckley, Neil & Cuff, Katherine & Hurley, Jeremiah & Mestelman, Stuart & Thomas, Stephanie & Cameron, David, 2015. "Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 177-196.

    More about this item

    Keywords

    Education; Households;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fip:fedlwp:2011-032. 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: Anna Oates (email available below). General contact details of provider: https://edirc.repec.org/data/frbslus.html .

    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.