TY - JOUR AU - Flores Curiel, Daniel PY - 2016/07/01 Y2 - 2024/03/29 TI - Subsidizing or taxing education? A note on the quality gap and government finances JF - Estudios Económicos de El Colegio de México JA - EE VL - 31 IS - 2 SE - Articles DO - 10.24201/ee.v31i2.20 UR - https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/20 SP - 339-353 AB - <p>In this article, I study the effects of an education tax (or subsidy) on the quality gap between public and private education as well as on government finances. In order to do this, I model the behavior of a private school that chooses price and quality in order to compete for students with a public school. Among other things, I show that a per unit tax (or subsidy) can increase (reduce) the quality gap and worsen (improve) government finances.</p> ER -