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Education and selective vouchers

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  • Amedeo Piolatto

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Abstract

A widely accepted result in the literature is that the majority of votersare against the introduction of universal vouchers. Chen and West (2000) predict that voters' attitudes towards selective vouchers (SV) may be dif- ferent. They claim that voters are indi®erent between the no-voucher and SV regimes, unless competition leads to a reduction in the education price. I show that, when public schools are congested, the majority of voters are in favour of SV. Furthermore, SV induces a Pareto improvement. In equili- brium, the introduction of SV induces a reduction in income strati¯cation at school, with some relatively poor students attending private schools.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper177.pdf
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Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 177.

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Length: 28 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Handle: RePEc:mib:wpaper:177

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Keywords: positive public economics; education; vouchers; voting;

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References

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  1. Gerhard Glomm & B. Ravikumar, 1998. "Opting out of publicly provided services: A majority voting result," Social Choice and Welfare, Springer, vol. 15(2), pages 187-199.
  2. Chakrabarti, Rajashri, 2008. "Can increasing private school participation and monetary loss in a voucher program affect public school performance? Evidence from Milwaukee," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1371-1393, June.
  3. Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education DP-52, Department of Economics, Williams College.
  4. Mary A. Burke & Tim R. Sass, 2008. "Classroom peer effects and student achievement," Working Papers 08-5, Federal Reserve Bank of Boston.
  5. Smet, Mike, 2001. "Determining the optimal size of study fields in Flemish secondary education," Economics of Education Review, Elsevier, vol. 20(5), pages 443-457, October.
  6. Z. Chen & Edwin G. West, 1998. "Selective Versus Universal Vouchers: Modelling Median Voter Preferences in Education," Carleton Economic Papers 98-02, Carleton University, Department of Economics, revised Dec 2000.
  7. Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
  8. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 777-803, August.
  9. McEwan, Patrick J., 2003. "Peer effects on student achievement: evidence from Chile," Economics of Education Review, Elsevier, vol. 22(2), pages 131-141, April.
  10. Blomquist, Soren & Christiansen, Vidar, 1999. "The political economy of publicly provided private goods," Journal of Public Economics, Elsevier, vol. 73(1), pages 31-54, July.
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  12. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
  13. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  14. Gradstein, Mark & Justman, Moshe, 2001. "Education, Social Cohesion and Economic Growth," CEPR Discussion Papers 2773, C.E.P.R. Discussion Papers.
  15. Robert Dur & Amihai Glazer, 2005. "Subsidizing Enjoyable Education," CESifo Working Paper Series 1560, CESifo Group Munich.
  16. Jacques, Charles & Brorsen, B. Wade & Richter, Francisca G.-C., 2000. "Consolidating Rural School Districts: Potential Savings And Effects On Student Achievement," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
  17. Kokkelenberg, Edward C. & Dillon, Michael & Christy, Sean M., 2008. "The effects of class size on student grades at a public university," Economics of Education Review, Elsevier, vol. 27(2), pages 221-233, April.
  18. Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
  19. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
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  22. Stiglitz, J. E., 1974. "The demand for education in public and private school systems," Journal of Public Economics, Elsevier, vol. 3(4), pages 349-385, November.
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Cited by:
  1. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.

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