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Public Education or Vouchers? The Importance of Heterogeneous Preferences
Author(s) -
Preston Robb
Publication year - 2003
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.00093
Subject(s) - voucher , human capital , economics , voting , public education , public economics , distribution (mathematics) , labour supply , school choice , microeconomics , labour economics , economic growth , political science , accounting , market economy , mathematical analysis , mathematics , politics , law
This paper looks at the impact heterogeneous preferences for education have on education funding under private, public and voucher systems. An overlapping generations model incorporating human capital is used, where parents are the decision‐makers. They determine their labour supply and their child's education – either directly with personal contributions or collectively by voting on taxes. The education systems are compared by their impact on the growth and distribution of human capital. The use of heterogenous preferences proves to be critical, as these comparisons differ markedly from the homogenous case.