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Do childless households support local public provision of education

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  • Berardino Cesi

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Abstract

Empirical and theoretical studies show that the local provision of public education affects the well being of individuals through two channels: the first reflects the direct use of the good, whereas the second runs through the value of the housing. The second effect leans on the idea that the quality of public education is capitalized into the value of the own housing. Empirical evidence finds that in a multi-community model childless households support local public spending in education because of the capitalization effect. I study the behavior of childless households, not necessarily elderly, in a two community model and show that the capitalization effect may not be a sufficient condition for middle aged households without children to support local public spending in education by a majority voting.

Suggested Citation

  • Berardino Cesi, 2007. "Do childless households support local public provision of education," Discussion Papers in Economics 07/02, Department of Economics, University of Leicester.
  • Handle: RePEc:lec:leecon:07/2
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    File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp07-2.pdf
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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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