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To segregate or to integrate: Education politics and democracy

Author

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  • DE LA CROIX, David
  • DOEPKE, Matthias

Abstract

In most democracies, the majority of education expenditures is financed by the government. In non-democracies, we observe a wide variation in the mix of public and private funding of education. In addition, countries with high inequality tend to rely more heavily on private schooling. We develop a theory which integrates private decision on education and fertility with voting on public education expenditures. The theory is able to account for the facts mentioned above. Countries with high inequality exhibit more private education expenditures since rich people opt out of the public system. In non-democracies, concentration of political power leads to multiple equilibria in the determination of public education spending.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • DE LA CROIX, David & DOEPKE, Matthias, 2009. "To segregate or to integrate: Education politics and democracy," LIDAM Reprints CORE 2105, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2105
    DOI: 10.1111/j.1467-937X.2008.00529.x
    Note: In : Review of Economic Studies, 76, 597-628, 2009
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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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