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Improving early childhood education and care (ECEC) services is one of the challenging duties of public authorities in Germany.We think that inefficiency with respect to the quantity as well as the quality of ECEC services is caused by the prevalent object-based financing system. In this article, we tackle the issue by providing a positive analysis to the ongoing discussion about the future of publicly financed ECEC services. We present a model of a subject-based financing system for ECEC services with tradable vouchers. On the basis of this model, it is shown that by introducing tradable vouchers a more efficient allocation of resources is possible. Further, the model indicates that tradable vouchers also improve the quality of ECEC services.

jahrbücher für nationalökonomie und statistik

Der Coupon-Handelsansatz als Modell für eine subjektbezogene Finanzierung der Kinderbetreuung / The Coupon Trading Approach as a Model for a Subject-based Financing System of Early Childhood Education and Care Services