Building a Theoretical Framework to Link Local Taxes and Parental Choice of Education

Abstract

This paper theoretically examines the link between local taxes and education choice (indicated by private school enrollment rate or public school enrollment rate). The evidence shows that loca l taxes and parental choice of education are endogenously determined by one another. More im portantly, this study frames an economic theoretical background for local taxes and parental ch oice of education, which can be useful in constructing empirical models for further investigations of this issue.