Government Subsidies for Private Community Services: The Case of School Education

La Trobe University, School of Business Discussion Paper No. 03.01

25 Pages Posted: 23 May 2003

See all articles by Buly A. Cardak

Buly A. Cardak

La Trobe University - School of Economics

Phillip Hone

Deakin University - School of Accounting, Economics and Finance

Date Written: January 2003

Abstract

Governments confront potentially competing demands for increased provision of community services, prudent budgetary management and no expansion in taxes. In the areas of primary and secondary education, the federal government has attempted to deal with these pressures by using government subsidies for private schools to expand the size of the private school system and free up more resources for those who remain in the public education system. This initiative will be most successful when the demand for private education is highly responsive to private school fees and the subsidies are targeted at those segments of the school and student population that are most responsive to reductions in private school fees. The current system based on the overall Socio-Economic Status of each school's student population is probably an improvement over previous schemes, but it is still potentially inefficient because it does not target funds at the most fee-responsive groups.

Keywords: Education vouchers, Socio-economic status, australian education policy

JEL Classification: I20, I22, I28, H2

Suggested Citation

Cardak, Buly and Hone, Phillip, Government Subsidies for Private Community Services: The Case of School Education (January 2003). La Trobe University, School of Business Discussion Paper No. 03.01, Available at SSRN: https://ssrn.com/abstract=382700 or http://dx.doi.org/10.2139/ssrn.382700

Buly Cardak (Contact Author)

La Trobe University - School of Economics ( email )

Bundoora
Bundoora, Victoria 3083 3086
Australia
+61 3 9479 3419 (Phone)
+61 3 9479 1654 (Fax)

Phillip Hone

Deakin University - School of Accounting, Economics and Finance ( email )

Burwood, Victoria 3215
Australia

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