Public Education, communities and vouchers

  • Luengo-Prado M
  • Volij O
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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. © 2002 Board of Trustees of the University of Illinois. All rights reserved.

Author-supplied keywords

  • Communities
  • Public education
  • Tiebout
  • Vouchers

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