Determining Public Provision of Education Services in a Sequential Education Process
This paper applies a political economy approach to the study of the endogenous determination of the size and composition of a public education budget. In this model, there are two education stages: the first is compulsory, while advanced education is optional. Parents decide on the education policy by a majority vote, children attend schools and then decide whether to get advanced education. This paper shows that even in a simple scenario where only public education is available, children's college-attendance decisions may lead the single-crossing condition to fail, which indicates that a majority voting equilibrium may not exist. In a scenario where individuals can opt for private education services, the model provides necessary and sufficient conditions for an equilibrium of the "ends-against-the-middle" type, where the poor are decisive. An implication of this result is that the opting-out feature of education may improve the welfare of the poor.
Year of publication: |
2012
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Authors: | Gabriel, Romero J. |
Published in: |
The B.E. Journal of Economic Analysis & Policy. - De Gruyter, ISSN 1935-1682. - Vol. 12.2012, 1, p. 1-42
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Publisher: |
De Gruyter |
Saved in:
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