Public Education, Communities, and Vouchers
AbstractThis paper examines the effects of school vouchers on public school quality in a simple two-community model with local provision of education. Individuals differ only by income and one community imposes a fixed exogenous costs on its residents. The equilibria of the model are stratified with the rich community providing better education with a lower tax rate. 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. However, the quality difference between communities is shown to increase in equilibrium.
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Bibliographic InfoPaper provided by Oscar Volij in its series Economic theory and game theory with number 008.
Date of creation: 19 Jan 1999
Date of revision:
Publication status: Published in Quarterly Review of Economics and Finance, 43, 51-73, (2003).
Contact details of provider:
Postal: Oscar Volij, Department of Economics, Ben-Gurion University, Beer-Sheva 84105, Israel
Web page: http://volij.co.il/
Other versions of this item:
- Maria J. Luengo-Prado & Oscar Volij, 1999. "Public Education, Communities, and Vouchers," Working Papers 99-2, Brown University, Department of Economics.
- Volij, Oscar & Prado, Maria, 2003. "Public Education, Communities, and Vouchers," Staff General Research Papers 10127, Iowa State University, Department of Economics.
- I20 - Health, Education, and Welfare - - Education - - - General
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-03-15 (All new papers)
- NEP-MIC-1999-03-15 (Microeconomics)
- NEP-PBE-1999-03-15 (Public Economics)
- NEP-POL-1999-03-15 (Positive Political Economics)
- NEP-PUB-1999-03-15 (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.:
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