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School Choice and Competition

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Abstract

The two insights behind school choice are that externalities motivate government financing, but not provision, of schools, and that government-run schools will probably, owing to lack of competition, be x-inefficient. Under school choice, students choose among schools that compete for them on a truly level playing field. Governments play a financing, auditing, refereeing, and market-design role. Modern research focuses on evaluating the effects of school choice on the x-efficiency of schools, analysing how programme design affects the supply of schools, and investigating how information and matching mechanisms affect demand.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Caroline Hoxby

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  1. Caroline Hoxby
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Hoxby, C. (2018). School Choice and Competition. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1969

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