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School Vouchers and Public School Productivity - The Case of the Swedish Large Scale Voucher Program




Since the school voucher reform in 1992/93 Sweden has experienced a rapid increase in private schools. School regulations allow private and public schools to compete for students on very similar terms. This makes the Swedish educational market interesting for studying how competition affects the provision of education. In this study competition and public school productivity are analyzed for 105 urban municipalities during the period 1998/99 to 2001/02. The empirical estimations are performed in two stages. In the first stage, productivity is estimated using Data Envelopment Analysis (DEA) and a Malmquist productivity index. In the second stage, the estimated productivity is regressed on private school competition and a number of control variables. We cannot reject competition to be exogenous in a Hausman test. The coefficient for competition is not significant at the 5 percent level in any of the empirical specifications.

Suggested Citation

  • Waldo, Staffan, 2006. "School Vouchers and Public School Productivity - The Case of the Swedish Large Scale Voucher Program," Working Papers 2006:8, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2006_008

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    References listed on IDEAS

    1. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    2. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    3. Couch, Jim F & Shughart, William F, II & Williams, Al L, 1993. "Private School Enrollment and Public School Performance," Public Choice, Springer, vol. 76(4), pages 301-312, August.
    4. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    5. Duncombe, William & Miner, Jerry & Ruggiero, John, 1997. "Empirical Evaluation of Bureaucratic Models of Inefficiency," Public Choice, Springer, vol. 93(1-2), pages 1-18, October.
    6. William Sander, 1999. "Private Schools and Public School Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 697-709.
    7. Grosskopf, Shawna & Hayes, Kathy J. & Taylor, Lori L. & Weber, William L., 2001. "On the Determinants of School District Efficiency: Competition and Monitoring," Journal of Urban Economics, Elsevier, vol. 49(3), pages 453-478, May.
    8. Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February.
    9. Bradley, Steve & Johnes, Geraint & Millington, Jim, 2001. "The effect of competition on the efficiency of secondary schools in England," European Journal of Operational Research, Elsevier, vol. 135(3), pages 545-568, December.
    10. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William L. Weber, 1999. "Anticipating the Consequences of School Reform: A New Use of DEA," Management Science, INFORMS, vol. 45(4), pages 608-620, April.
    11. Newmark, Craig M, 1995. "Another Look at Whether Private Schools Influence Public School Quality: Comment," Public Choice, Springer, vol. 82(3-4), pages 365-373, March.
    12. Chang-Tai Hsieh & Miguel Urquiola, 2003. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," NBER Working Papers 10008, National Bureau of Economic Research, Inc.
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    More about this item


    Malmquist index; competition; education;

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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