Several states mandate that school district boundaries follow county lines, whil

Question

Several states mandate that school district boundaries follow county lines, while other states allow several school districts to locate in the same county. Assume that county size is approximately the same in both of these groups of states. Suppose both groups of states are considering implementing school vouchers, and proponents in both groups of states argue that increased competition will lead to greater efficiency. Which group of states is more likely to achieve greater efficiency gains? Hint: Think about Tiebout sorting.

Explanation / Answer

According to tiebout sorting. These are the assumptions:

This implies that other group is likely to acheive greater efficiency gain.

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