The implications of expanded school choice

The determinants of school choice have significant implications for a variety of public policies including the impact of school vouchers. This article presents a conceptual and empirical model of individual-level school choice over public in-district and transfer schooling, religious private and nonreligious private school-ing, and home schooling. Using a unique survey data set for the state of Tennessee, the authors estimate the impact of own- and cross-price elasticities on the actual schooling choice measured by school district within the state. They find that these elasticities are important determinants of school choice. Using the empirical results, simulations suggest that a hypothetical $500 school voucher would reduce public school enrollment in city school districts by 8%. The demand for education is not so simple a matter as choos-ing whether to send a child to public school or to the local private school. First, individuals and families are empowered to set some standards for their public schools through the voting process. At the same time, families face the choice of where to send their children: public schools inside or outside their district, religious or nonreligious private schools, or home schools. As consumers of education, parents will consider the value of the education available from the different types of schooling. Given household preferences and income as wel