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Publicly provided private goods: education and selective vouchers

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Abstract

The literature on vouchers often concludes that a vouchers-based system cannot be the outcome of a majority vote. This paper shows that, when the value of vouchers and who is entitled to receive them are fixed exogenously, the majority of voters are in favour of selective vouchers. On top of that, as long as the introduction of vouchers does not undermine the existence of the public school system, introducing selective vouchers induces a Pareto improvement. Middle class agents are the only one using vouchers in equilibrium, while the poorest agents in the economy profit from the reduction in public school congestion.

Suggested Citation

  • Piolatto, Amedeo, 2008. "Publicly provided private goods: education and selective vouchers," MPRA Paper 8934, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8934
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    Cited by:

    1. Akyol, Metin, 2016. "Do educational vouchers reduce inequality and inefficiency in education?," Economics of Education Review, Elsevier, vol. 55(C), pages 149-167.
    2. 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.
    3. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.

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    More about this item

    Keywords

    public economics; education; vouchers; voting;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I2 - Health, Education, and Welfare - - Education
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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