Modeling the Economic Relationship between Local Taxes and Parental Choice of Education

In this chapter, I theoretically examine the link between local taxes and education choice (indicated by private school enrollment rate or public school enrollment rate). As a result, the evidence shows that local Taxes and parental choice of education are endogenously determined by one another. Local taxes and choice of education rely on parents’ preference, which suggests that local taxes per public school pupil and parental choice of education may be jointly determined More importantly, this study frames an economic theoretical background for local taxes and parental choice of education, which can be useful in constructing empirical models for further investigations of this issue.

Author (s) Details

Dr. Tin-Chun Lin
School of Business and Economics, Indiana University – Northwest, Gary, IN 46408, USA.

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