Public Education, Communities, and Vouchers
This 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.
(This abstract was borrowed from another version of this item.)
|Date of creation:||1999|
|Contact details of provider:|| Postal: Department of Economics, Brown University, Providence, RI 02912|
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