• Table of Contents
    • Abstract
    • Keywords
    • Article
      • The logic of school choice
      • Evaluations of school choice programmes
      • Design work on demand-side problems in school choice
      • Design work on supply side problems in school choice
    • See Also
    • Bibliography
    • How to cite this article

school choice and competition

Caroline Hoxby
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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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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Keywords

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Article

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How to cite this article

Hoxby, Caroline. "school choice and competition." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 01 November 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_V000064> doi:10.1057/9780230226203.1486

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