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Competition and Private School Vouchers

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  • Peter Rangazas

Abstract

This paper examines the theoretical presumption that private school vouchers will increase the quality of education in public and private schools. Even in simple models that assume public education is plagued by X-inefficiency or budger-maximizing administrators, the effect of vouchers on quality are ambiguous. The primary reason for the ambiguity is that vouchers may reduce the enrollment response to changes in public-school quality by placing different households at the margin of deciding between public and private education. The ambiguity also stems from situations where public cost-cutting responses completely dominate quality responses and where private-school quality falls.

Suggested Citation

  • Peter Rangazas, 1997. "Competition and Private School Vouchers," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 245-263.
    • Handle: RePEc:taf:edecon:v:5:y:1997:i:3:p:245-263
    DOI: 10.1080/09645299700000022
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
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    Cited by:

    1. Gary Scott, 2000. "Equal Educational Opportunity and the Significance of Circumstantial Knowledge," Education Economics, Taylor & Francis Journals, vol. 8(3), pages 197-208.
    2. Rafael Granell, 2002. "Education Vouchers in Spain: The Valencian Experience," Education Economics, Taylor & Francis Journals, vol. 10(2), pages 119-132.
    3. Christopher R. Geller & David L. Sjoquist & Mary Beth Walker, 2006. "The Effect of Private School Competition on Public School Performance in Georgia," Public Finance Review, , vol. 34(1), pages 4-32, January.
    4. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
    5. 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.

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