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Stress testing a quasi-market : Unintended consequences of the Swedish school voucher system

Bergh, Andreas LU and Wernberg, Joakim LU (2025) In Scandinavian Journal of Public Administration
Abstract (Swedish)
Quasi-markets are increasingly used in public service provision, yet they remain highly contested. This paper develops a conceptual framework grounded in economic theory to examine how quasi-markets differ from traditional markets along five key dimensions: (1) revenues, costs, and profits, (2) the matching of supply and demand, (3) competition, (4) structural change, and (5) rent-seeking. Assuming profit-maximizing behavior, we stress-test the quasi-market model to explore how these structural differences shape incentives and influence outcomes. Applying the framework to Sweden’s school voucher system, we show that specific design features have led to unintended consequences that undermine service quality and conflict with the reform’s... (More)
Quasi-markets are increasingly used in public service provision, yet they remain highly contested. This paper develops a conceptual framework grounded in economic theory to examine how quasi-markets differ from traditional markets along five key dimensions: (1) revenues, costs, and profits, (2) the matching of supply and demand, (3) competition, (4) structural change, and (5) rent-seeking. Assuming profit-maximizing behavior, we stress-test the quasi-market model to explore how these structural differences shape incentives and influence outcomes. Applying the framework to Sweden’s school voucher system, we show that specific design features have led to unintended consequences that undermine service quality and conflict with the reform’s stated policy goals. (Less)
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organization
publishing date
type
Contribution to journal
publication status
in press
subject
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Scandinavian Journal of Public Administration
pages
27 pages
publisher
University of Gothenburg School of Public Administration
ISSN
2001-7405
language
English
LU publication?
yes
id
aacbdd33-fc73-40b9-abf4-52aaee7dacdf
date added to LUP
2025-09-16 10:47:52
date last changed
2025-10-13 11:44:25
@article{aacbdd33-fc73-40b9-abf4-52aaee7dacdf,
  abstract     = {{Quasi-markets are increasingly used in public service provision, yet they remain highly contested. This paper develops a conceptual framework grounded in economic theory to examine how quasi-markets differ from traditional markets along five key dimensions: (1) revenues, costs, and profits, (2) the matching of supply and demand, (3) competition, (4) structural change, and (5) rent-seeking. Assuming profit-maximizing behavior, we stress-test the quasi-market model to explore how these structural differences shape incentives and influence outcomes. Applying the framework to Sweden’s school voucher system, we show that specific design features have led to unintended consequences that undermine service quality and conflict with the reform’s stated policy goals.}},
  author       = {{Bergh, Andreas and Wernberg, Joakim}},
  issn         = {{2001-7405}},
  language     = {{eng}},
  publisher    = {{University of Gothenburg School of Public Administration}},
  series       = {{Scandinavian Journal of Public Administration}},
  title        = {{Stress testing a quasi-market : Unintended consequences of the Swedish school voucher system}},
  year         = {{2025}},
}