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Entry into the Schooling Market: How Is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?


  • Downes, Thomas A
  • Greenstein, Shane M


This research examines the location choice of private schools entering the California schooling market in 1979-80. We find that entrants are more likely to locate in public school districts with lower levels of per-pupil expenditure and higher fractions of public school students who reside in low-income households. In addition, we provide evidence of differences in the responsiveness of different types of private schools to the underlying conditions. Also, in comparing our results to those of previous research, we find that the determinants of the location choices of entrants appear to be the same as the determinants of the location pattern of incumbent private schools. Copyright 2002 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

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  • Downes, Thomas A & Greenstein, Shane M, 2002. "Entry into the Schooling Market: How Is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 341-371, October.
  • Handle: RePEc:bla:buecrs:v:54:y:2002:i:4:p:341-71

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    References listed on IDEAS

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    Cited by:

    1. Brunner, Eric J. & Imazeki, Jennifer, 2008. "Tiebout choice and universal school vouchers," Journal of Urban Economics, Elsevier, vol. 63(1), pages 253-279, January.
    2. repec:bla:ausecr:v:49:y:2016:i:4:p:432-452 is not listed on IDEAS
    3. Thomas J. Nechyba, 1999. "A Model of Multiple Districts and Private Schools: The Role of Mobility, Targeting, and Private School Vouchers," NBER Working Papers 7239, National Bureau of Economic Research, Inc.
    4. Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March.
    5. M. Niaz Asadullah, 2016. "Do Pro-Poor Schools Reach Out to the Poor? Location Choice of BRAC and ROSC Schools in Bangladesh," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 49(4), pages 432-452, December.
    6. Susan Dynarski & Jonathan Gruber & Danielle Li, 2009. "Cheaper By the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance," NBER Working Papers 15461, National Bureau of Economic Research, Inc.

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