American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Majority Choice of an Income-Targeted Educational Voucher
American Economic Journal: Microeconomics
vol. 10,
no. 4, November 2018
(pp. 289–325)
Abstract
A model of majority choice of voucher characteristics with quantitative counterpart explains observed income eligibility requirements for educational vouchers. Households differ by income and preference for religious schooling. They elect a policy maker who chooses public school expenditure, a voucher, a maximum income for voucher eligibility, and a tax to finance public expenditure. Equilibrium has a voucher below per student public expenditure, an eligibility threshold near 300 percent of the poverty level, and a majority in public school though with substantial voucher usage, all properties typical of U.S. voucher programs. Disallowing a voucher leads to higher per student public expenditure.Citation
Epple, Dennis, Richard Romano, and Sinan Sarpça. 2018. "Majority Choice of an Income-Targeted Educational Voucher." American Economic Journal: Microeconomics, 10 (4): 289–325. DOI: 10.1257/mic.20160141Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H44 Publicly Provided Goods: Mixed Markets
- H71 State and Local Taxation, Subsidies, and Revenue
- I21 Analysis of Education
- I22 Educational Finance; Financial Aid
- I28 Education: Government Policy
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