| Abstract: | In this chapter “private” schools are defined as those that were privately founded and are privately managed; they usually have some private funding, although in some cases considerable funding and control come from the government. The size and nature of the private sector is viewed as stemming from excess demand for education due to limited public spending (i.e., these are students who would prefer to use the public schools but are involuntarily excluded and pushed into the private sector); differentiated demand due primarily to cultural heterogeneity (i.e., these are students whose differentiated tastes along religious, linguistic or ethnic lines lead them voluntarily to choose the private sector even if a public school place is available); and the supply of non-profit educational entrepreneurship (e.g., founders who start schools to maximize religious faith or believers, rather than profits) by competing religious organizations. The impact of public policies, including public educational spending and private subsidies, is also considered. |
