The Economics of Vouchers
AbstractThis paper aims to provide a swift tour of the economic issues presented by vouchers and thus to fill an apparent gap in the literature for a basic survey of the subject. Among the issues it considers are: factors determining a voucher's cash-equivalence; reasons (such as paternalism, externalities, and distribution) for giving beneficiaries non-cash-equivalent vouchers rather than cash; optimal tax issues involved in the design of vouchers and the choice between vouchers and other delivery mechanisms, including factors determining the optimal marginal reimbursement rate (MRR) in a voucher program, and the similarity between this question and that of determining optimal marginal tax rates (MTRs) under the income tax; the incentive effects of voucher eligibility criteria, such as income or asset tests; factors determining the allocative and price effects of vouchers, both in the short run when unexpectedly enacted and at equilibrium; and factors relevant to the choice between private and public supply that may often overlap with the decision whether to adopt a voucher program.
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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7092.
Date of creation: Apr 1999
Date of revision:
Publication status: published as Steuerle, C. Eugene, et al. (eds.) Vouchers and the provision of public services. Washington, D.C.: Brookings Institution Press; Washington, D.C.: Committee for Economic Development, 2000.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- H00 - Public Economics - - General - - - General
- H80 - Public Economics - - Miscellaneous Issues - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-05-03 (All new papers)
- NEP-EDU-1999-05-03 (Education)
- NEP-IND-1999-05-03 (Industrial Organization)
- NEP-PBE-1999-05-03 (Public Economics)
- NEP-PUB-1999-05-03 (Public Finance)
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.:
- Cecilia Elena Rouse, 1998. "Private School Vouchers And Student Achievement: An Evaluation Of The Milwaukee Parental Choice Program," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(2), pages 553-602, May.
- Slemrod, Joel, 1990.
"Optimal Taxation and Optimal Tax Systems,"
Journal of Economic Perspectives, American Economic Association,
American Economic Association, vol. 4(1), pages 157-78, Winter.
- Oliver Hart & Andrei Shleifer & Robert Vishny, 1996.
"The Proper Scope of Government: Theory and an Application to Prisons,"
Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research
1778, Harvard - Institute of Economic Research.
- Hart, Oliver & Shleifer, Andrei & Vishny, Robert W, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1127-61, November.
- Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1996. "The Proper Scope of Government: Theory and an Application to Prisons," NBER Working Papers 5744, National Bureau of Economic Research, Inc.
- Sullivan, Daniel, 1989.
"Monopsony Power in the Market for Nurses,"
Journal of Law and Economics, University of Chicago Press,
University of Chicago Press, vol. 32(2), pages S135-78, October.
- Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 38(114), pages 175-208, April.
- Bradford, David F & Oates, Wallace E, 1971. "An Analysis of Revenue Sharing in a New Approach to Collective Fiscal Decisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 85(3), pages 416-39, August.
- Shaviro, Daniel, 1997. "Do Deficits Matter?," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226751122, June.
- Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, American Economic Association, vol. 60(3), pages 364-78, June.
- Stephen A. Woodbury & Robert G. Spiegelman, .
"Bonuses to Workers and Employers to Reduce unemployment: Randomized Trials in Illinois,"
Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research
sawrgs1987, W.E. Upjohn Institute for Employment Research.
- Woodbury, Stephen A & Spiegelman, Robert G, 1987. "Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois," American Economic Review, American Economic Association, American Economic Association, vol. 77(4), pages 513-30, September.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 64, pages 416.
- Andreas Freytag, 2002. "Estonian labour market and EMU membership - challenges and policy options," Bank of Estonia Working Papers, Bank of Estonia 2002-11, Bank of Estonia, revised 10 Dec 2002.
- World Bank, 2006. "Urban Land and Housing Markets in the Punjab, Pakistan," World Bank Other Operational Studies 8280, The World Bank.
- Steven Anlian & Raymond J., 2003. "Home Purchase Certificates: The Other Housing Vouchers," European Journal of Housing Policy, Taylor and Francis Journals, Taylor and Francis Journals, vol. 3(3), pages 227-241, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.