Theoretical Analysis of the Strategic Provision of Public Childcare Service Administration by Private and Public Providers

@inproceedings{Shiozu2019TheoreticalAO,
  title={Theoretical Analysis of the Strategic Provision of Public Childcare Service Administration by Private and Public Providers},
  author={Yurika Shiozu},
  year={2019}
}
The analysis described in this chapter seeks to determine whether municipalities can provide adequate childcare services given the appropriate incentive design using the framework of principal-agent theory. We use the Laffont and Tirole model to show that even with rent-seeking behavior, securing a supply of childcare services and striving to resolve the issue of waiting lists for children would improve social welfare. Specifically, we find that allowing the movement of funds across budget… CONTINUE READING