Determining Public Provision of Education Services in a Sequential Education Process

Romero J. Gabriel ()
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Romero J. Gabriel: Universidad de Santiago de Chile
Authors registered in the RePEc Author Service: José Gabriel Romero Ciavatto

The B.E. Journal of Economic Analysis & Policy, 2012, vol. 12, issue 1, 42

Abstract: 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.

Keywords: compulsory education; advanced education; majority vote (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1515/1935-1682.3079

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