The effects of economic integration on the provision of mandatory education as a redistributive policy
The aim of this paper is to investigate the implications of increased student mobility on the level of education provided after opening the borders between two similar countries. As a preliminary result, it will be shown that some public provision of mandatory education can be welfare improving when an optimal linear income tax exists. Compared to the autarchic optimal provision level, mandatory education will be underprovided in both countries at the symmetrical Nash equilibrium.
|Date of creation:||01 Oct 1998|
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- Boadway, R. & Marchand, M., "undated". "The use of public expenditures for redistributive purposes," CORE Discussion Papers RP 1131, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Munro, Alistair, 1991. "The optimal public provision of private goods," Journal of Public Economics, Elsevier, vol. 44(2), pages 239-261, March.
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- Gahvari, Firouz, 1995. "In-Kind versus Cash Transfers in the Presence of Distortionary Taxes," Economic Inquiry, Western Economic Association International, vol. 33(1), pages 45-53, January.
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