%0 Report
        %A Brunello, Giorgio
%A Rocco, Lorenzo
        %T Diploma No Problem: Can Private Schools Be of Lower Quality than Public Schools?
        %D 2004
        %8 2004 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1336
        %U https://www.iza.org/index.php/publications/dp1336
        %X Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private
schools can provide lower quality than public schools. Using a stylized model of the
education market with sequential entry of a public and a private school, we show that,
depending on the underlying parameters of the model, a market structure with the private
school offering at a positive price lower quality than the public school can be an equilibrium.
The calibrated parameters for Italy suggest the existence of such an equilibrium in the Italian
market for education.
        %K private schools
%K education
%K Italy