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- Title
SUBSIDIZING OR TAXING EDUCATION? A NOTE ON THE QUALITY GAP AND GOVERNMENT FINANCES.
- Authors
Curiel, Daniel Flores
- Abstract
In this article, I study the effects of an education tax (or subsidy) on the quality gap between public and private education as well as on government finances. In order to do this, I model the behavior of a private school that chooses price and quality in order to compete for students with a public school. Among other things, I show that a per-unit tax (or subsidy) can increase (reduce) the quality gap and worsen (improve) government finances.
- Subjects
TAXATION of education; FINANCING of private schools; PRIVATE school costs; PUBLIC finance; SUBSIDIES
- Publication
Estudios Económicos, 2016, Vol 31, Issue 2, p339
- ISSN
0188-6916
- Publication type
Article