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Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
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http://hdl.handle.net/10419/18458
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| Title: | | Central versus Local Education Finance: A Political Economy Approach  |
| Authors: | | Borck, Rainald |
| Issue Date: | | 2006 |
| Series/Report no.: | | DIW-Diskussionspapiere 565 |
| Abstract: | | This paper models voters' preferences over central versus local education policies when there are private alternatives. Education is financed by income taxes and individuals are mobile between communities. Public education levels are chosen by majority vote. Contrary to conventional wisdom, centralisation may benefit the rich and poor, while the middle class prefer decentralised education. The model is also extended to include peer effects. Peer effects increase the support for central school finance, even in the community with good public schools. |
| Subjects: | | education centralisation private schools majority voting |
| JEL: | | I22 D72 H72 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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| dp565.pdf | | 337.36 kB | Adobe PDF |
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