Competition and Educational Outcomes: Theory and Evidence from Chile
Central Bank of Chile Working Paper No. 150; Catholic University of Chile Department of Economics Working Paper No. 217
49 Pages Posted: 21 Jul 2002
Date Written: May 2002
This paper presents a theoretical model and empirical estimations to evaluate the effects of competition on school quality. Empirical estimations, using roughly 5,000 Chilean schools in the 1994-1997 period and econometric techniques robust to endogeneity, support the theoretical model and show a positive and relevant effect of competition on the results of public-subsidized schools. The effects are bigger for the fraction of public-subsidized schools that are private, because they have incentives more directly related to academic performance.
Note: The downloadable document is written in Spanish.
Keywords: Vouchers, Competition, Chile
JEL Classification: H52, I21, I22
Suggested Citation: Suggested Citation