Abstract
This paper examines the effects of school vouchers on the equilibrium of a simple two-community model with local provision of education. Individuals differ only in income and one community imposes a fixed cost on its residents. 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.
Original language | English |
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Pages (from-to) | 51-73 |
Number of pages | 23 |
Journal | Quarterly Review of Economics and Finance |
Volume | 43 |
Issue number | 1 |
DOIs | |
State | Published - 1 Mar 2003 |
Externally published | Yes |
Keywords
- Communities
- Public education
- Tiebout
- Vouchers
ASJC Scopus subject areas
- Finance
- Economics and Econometrics