Abstract
In Chapter 2 it was seen that while the arguments in favour of significant state funding of education are persuasive, this need not imply that the state should necessarily provide that education. This is analogous to the argument that while public money may be used to build roads, the contractors who actually do the work can come from the private sector. In the present chapter this issue is further investigated. Attention is focused on the privatisation programme in general, and on the place of education within that programme. The relationship between the public and private sectors within the education industry is also analysed. The theory of social choice is a cornerstone throughout this analysis, highlighting, as it does, the manner in which society’s preferences for non-rival goods can be determined; for this reason social choice theory is extensively used in this chapter to guide the discussion.
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
References
Arrow, K. J. (1971) ‘Equality in public expenditure’, Quarterly Journal of Economics, 85, 409–15.
Bruno, M. (1976) ‘Equality, complementarity and the incidence of public expenditures’, Journal of Public Economics, 6, 395–407.
Bruno, M. (1977) ‘Efficiency and equity in public education expenditures’, in Feldstein, M. S. and Inman, R. P. (eds), The Economics of Public Services (London: Macmillan).
Friedman, M. (1962) ‘The role of government in education’, in Capitalism and Freedom (Chicago University Press), 85–107.
James, E. (1984) ‘Benefits and costs of privatized public services: lessons from the Dutch education system’, Comparative Education Review, 28, 605–24.
James, E. (1991) ‘Public policies toward private education: an international comparison’, International Journal of Educational Research, 15, 359–76.
Kay, J. A. and Silberston, Z. A. (1984) ‘The new industrial policy — privatisation and competition’, Midland Bank Review, Spring, 8–16.
Kay, J. A. and Thompson, D. J. (1986) ‘Privatisation: a policy in search of a rationale’, Economic Journal, 96, 18–32.
Mankiw, N. G. and Summers, L. H. (1986) ‘Money demand and the effects of fiscal policy’, Journal of Money Credit and Banking, 18, 415–29.
McMahon, W. W. (1982) ‘Efficiency and equity criteria for educational budgeting and finance’, in McMahon, W. W. and Geske, T. G. (eds), Financing Education: Overcoming Inefficiency and Inequity (Urbana and Chicago: University of Illinois Press).
Millward, R. (1982) ‘The comparative performance of public and private ownership’, in Roll, E. (ed.), The Mixed Economy (London: Macmillan).
Nicholl, J. P., Thomas, K. J., Williams, B. T. and Knowelden, J. (1984) ‘Contribution of the private sector to elective surgery in England and Wales’, The Lancet, 8394, 14 July, 89–92.
Pring, R. (1988) ‘Privatisation’, Educational Management and Administration, 16, 85–96.
Pryke, R. (1982) ‘The comparative performance of public and private enterprise’, Fiscal Studies, 3, 68–81.
Rees, R. (1985) ‘The theory of principal and agent’, Bulletin of Economic Research, 37, 3–26 and 75–95.
Ross, S. (1973) ‘The economic theory of agency: the principal’s problem’, American Economic Review, Papers and Proceedings, 63, 134–9.
Stiglitz, J. E. (1974) ‘The demand for education in public and private school systems’, Journal of Public Economics, 3, 349–85.
Strong, N. and Waterson, M. (1987) ‘Principals, agents and information’, in Clarke, R. and McGuiness, A. (eds), The Economics of the Firm (Oxford: Basil Blackwell).
Ulph, D. T. (1977) ‘On the optimal distribution of income and educational expenditure’, Journal of Public Economics, 8, 341–56.
Vickers, J. and Yarrow, G. (1988) Privatization: An Economic Analysis (Cambridge, Mass. and London: MIT Press).
Copyright information
© 1993 Geraint Johnes
About this chapter
Cite this chapter
Johnes, G. (1993). Private or Public Sector?. In: The Economics of Education. Palgrave, London. https://doi.org/10.1007/978-1-349-23008-2_5
Download citation
DOI: https://doi.org/10.1007/978-1-349-23008-2_5
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-56836-1
Online ISBN: 978-1-349-23008-2
eBook Packages: Palgrave Social & Cultural Studies CollectionSocial Sciences (R0)