Modeling the Economic Relationship between Local Taxes and Parental Choice of Education

In this chapter, I theoretically examine the link between local taxes and education choice (indicated by
private school enrollment rate or public school enrollment rate). As a result, the evidence shows that
local Taxes and parental choice of education are endogenously determined by one another. Local
taxes and choice of education rely on parents’ preference, which suggests that local taxes per public
school pupil and parental choice of education may be jointly determined More importantly, this study
frames an economic theoretical background for local taxes and parental choice of education, which
can be useful in constructing empirical models for further investigations of this issue.