ECON 350 Lecture Notes - Lecture 19: Natural Monopoly, School Voucher, Economic Mobility
Document Summary
Chp 4 public education if education is considered as public good rival: more children in a classroom lowers the quality of the experience excludable: private schools can decide which students to accept redistribution: In privately financed education model, as long as education is a normal good, higher- income families would provide more education for their children than would lower- income families. Income mobility, whereby low-income people have a chance to raise their incomes, as long been a stated goal for most democratic societies, and public education promotes income mobility potential positive externalities to education. Productivity makes people more productive->increase the standard of living. Credit market failures a world without government involvement, families would have to provide the money to buy their children"s education from private schools. Failure to maximize family utility parents may not choose appropriate levels of education for their children in canada, almost every provinces" education is compulsory up to the age of 16.