TY  - UNPB
T1  - A foundation system and a state system-private-school implications on welfare and education expenditure
A1  - Kwiatkowski,Andrzej
AU  - Kwiatkowski,Andrzej
PB  - University of Dundee
PY  - 2010
Y1  - 2010
N2  - This paper examines the effects of two different education financing systems: a foundation system and a state system on the level and distribution of resources devoted to education in the presence of private schools. We use political economy approach where households differ in their level of income, and the central tax rate used to finance education is determined by a majority vote. Our analysis focuses on implications of allowing for a private-school option. To evaluate the importance of private schools we develop a computational model and calibrate it using USA data. The results reveal that the private school option is very important quantitatively in terms of welfare, total resources spent on education and equity.
AB  - This paper examines the effects of two different education financing systems: a foundation system and a state system on the level and distribution of resources devoted to education in the presence of private schools. We use political economy approach where households differ in their level of income, and the central tax rate used to finance education is determined by a majority vote. Our analysis focuses on implications of allowing for a private-school option. To evaluate the importance of private schools we develop a computational model and calibrate it using USA data. The results reveal that the private school option is very important quantitatively in terms of welfare, total resources spent on education and equity.
KW  - Education finance reform
KW  - Private schools
M1  - Discussion paper
BT  - A foundation system and a state system-private-school implications on welfare and education expenditure
T3  - Dundee Discussion Papers in Economics
T3  - en_GB
ER  -