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Local Taxes and Parental Choice of Education: The Case of Pennsylvania

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  • Tin-Chun Lin

    (Indiana University - Northwest)

Abstract

In this paper, we empirically examine the link between local taxes and education choice. Due to the endogenous relationship, 2SLS estimation is applied to correct for simultaneous equations bias. A total of 500 school districts in the state of Pennsylvania during the school years 1999-2000 to 2001-2002 are selected for a case study. Results indicate that local taxes per student are positively associated with private school enrollment rates, implying that increases in these enrollments greatly benefit public schools through tax support.

Suggested Citation

  • Tin-Chun Lin, 2008. "Local Taxes and Parental Choice of Education: The Case of Pennsylvania," Economics Bulletin, AccessEcon, vol. 9(24), pages 1-7.
  • Handle: RePEc:ebl:ecbull:eb-08i20011
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    References listed on IDEAS

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    1. Figlio, David N., 1997. "Teacher salaries and teacher quality," Economics Letters, Elsevier, vol. 55(2), pages 267-271, August.
    2. Tin-Chun Lin & Shakil Quayes, 2006. "The impact of local taxes on public school performance: the case of Pennsylvania," Applied Economics Letters, Taylor & Francis Journals, vol. 13(7), pages 423-426.
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    More about this item

    Keywords

    Local Taxes;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • H0 - Public Economics - - General

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