Resource title

Diploma No Problem : Can Private Schools Be of Lower Quality than Public Schools?

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Resource description

Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private schools can provide lower quality than public schools. Using a stylized model of the education market with sequential entry of a public and a private school, we show that, depending on the underlying parameters of the model, a market structure with the private school offering at a positive price lower quality than the public school can be an equilibrium. The calibrated parameters for Italy suggest the existence of such an equilibrium in the Italian market for education.

Resource author

Giorgio Brunello, Lorenzo Rocco

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20605

Resource license

Adapt according to the presented license agreement and reference the original author.