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Public Education, Communities, and Vouchers

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  • Volij, Oscar
  • Prado, Maria

Abstract

This paper examines the effects of school vouchers on the equilibrium of a simple two-community model with local provision of education. Individuals differ only in income and one community imposes a fixed cost on its residents. 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.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10127.

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Date of creation: 01 Jan 2003
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Publication status: Published in Quarterly Review of Economics and Finance 2003, vol. 43, pp. 51-73
Handle: RePEc:isu:genres:10127

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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References

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  1. Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 828-58, August.
  2. Gerhard Glomm & B. Ravikumar, 1998. "Opting out of publicly provided services: A majority voting result," Social Choice and Welfare, Springer, Springer, vol. 15(2), pages 187-199.
  3. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
  4. Raquel Fernandez & Richard Rogerson, 1993. "Keeping People Out: Income Distribution, Zoning and the Quality of Public Education," NBER Working Papers 4333, National Bureau of Economic Research, Inc.
  5. Hoyt, William H. & Lee, Kangoh, 1998. "Educational vouchers, welfare effects, and voting," Journal of Public Economics, Elsevier, Elsevier, vol. 69(2), pages 211-228, June.
  6. Ireland, Norman J., 1990. "The mix of social and private provision of goods and services," Journal of Public Economics, Elsevier, Elsevier, vol. 43(2), pages 201-219, November.
  7. Fernandez, Raquel & Rogerson, Richard, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(1), pages 135-64, February.
  8. Stiglitz, J. E., 1974. "The demand for education in public and private school systems," Journal of Public Economics, Elsevier, Elsevier, vol. 3(4), pages 349-385, November.
  9. C. F. Manski, . "Educational choice (vouchers) and social mobility," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 972-92, University of Wisconsin Institute for Research on Poverty.
  10. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, American Economic Association, vol. 88(1), pages 33-62, March.
  11. Fernandez, Raquel & Rogerson, Richard, 1998. "Public Education and Income Distribution: A Dynamic Quantitative Evaluation of Education-Finance Reform," American Economic Review, American Economic Association, American Economic Association, vol. 88(4), pages 813-33, September.
  12. Thomas J. Nechyba, 1996. "Public School Finance in a General Equilibrium Tiebout World: Equalization Programs, Peer Effects and Private School Vouchers," NBER Working Papers 5642, National Bureau of Economic Research, Inc.
  13. repec:eme:rlepps:v:18:y:1999:i:1999:p:115-140 is not listed on IDEAS
  14. Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, Elsevier, vol. 10(1), pages 97-106, August.
  15. D. N. Figlio & J. A. Stone, . "School Choice and Student Performance: Are Private Schools Really Better?," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1141-97, University of Wisconsin Institute for Research on Poverty.
  16. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, Elsevier, vol. 62(3), pages 297-325, November.
  17. Rangazas, Peter, 1995. "Vouchers in a community choice model with zoning," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 35(1), pages 15-39.
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Cited by:
  1. Martinez-Mora, Francisco, 2006. "The existence of non-elite private schools," Journal of Public Economics, Elsevier, Elsevier, vol. 90(8-9), pages 1505-1518, September.
  2. Francisco Martinez Mora, . "Income Stratification Across Public and Private Education: The Multi-community Case," Discussion Papers, Department of Economics, University of York 03/01, Department of Economics, University of York.
  3. Francisco Martínez Mora, 2004. "Opting-out and income mixing in urban economies:the role of neighborhood effects," Economic Working Papers at Centro de Estudios Andaluces E2004/67, Centro de Estudios Andaluces.

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