Public Finance and Public Policy by Jonathan Gruber Essay

Public Finance and Public Policy by Jonathan Gruber - study Example1.ProductivityIf a higher level of education will make a person more productive, then the society could benefit from education in terms of higher living standards due to the increased productivity.2.CitizenshipEducation makes citizens more informed as well as active voters, which in turn has verificatory benefits for other people through the quality improvement of the democratic process.3.Credit Market FailuresThe families inability to borrow to finance education is another market failure that would cut the governments intervention. 4.Failure to maximize Family UtilityThe government may feel that loans are not a good solution to credit market failures because it is refer that parents would still choose appropriate levels of education for their children.5.RedistributionIn a privately funded education model, as long as education is a normal good, stiff families will provide more education to their children than the low-income families.11.2 How Is The Government Involved in Education?1.Free public Education and Crowding Out 3.olving the Crowd-Out Problem Vouchers-Consumer Sovereignty whiz benefit of vouchers is that they allow individual to match closely their choices to education with their tastes.-CompetitionAnother benefit of the vouchers is that they allow the education market to take advantage of the pressures of competition that modify the private markets to operate efficiently.4.Problems with Educational Vouchers-Vouchers Will Lead to Segregation