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The Impact Of Ethnic Heterogeneity On Education Spending: A Spatial Econometric Analysis Of United States School Districts

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  • Olugbenga Ajilore

Abstract

In the public finance literature it is well understood that a community's spending can be affected by neighboring communities’ spending. It is relatively straightforward to see why these spillovers exist. For example, if a school district increases its spending on public education, this could affect the spending level of neighboring school districts. This paper uses spatial analysis to test the hypothesis that a school district's ethnic heterogeneity affects support for public education. Using a Spatial Lag Model and a national panel of U.S. school districts, I find that spatial dependence does exist in the data and that ethnic heterogeneity is negatively related to school district spending.

Suggested Citation

  • Olugbenga Ajilore, 2011. "The Impact Of Ethnic Heterogeneity On Education Spending: A Spatial Econometric Analysis Of United States School Districts," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 23(1), pages 66-76, March.
  • Handle: RePEc:bla:revurb:v:23:y:2011:i:1:p:66-76
    DOI: 10.1111/j.1467-940X.2011.00178.x
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    Cited by:

    1. Ivo Bischoff & Ferry Prasetyia, 2015. "Determinants of local public expenditures on education: empirical evidence for Indonesian districts between 2005 and 2012," MAGKS Papers on Economics 201532, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Jannett Highfill & Kevin O’Brien, 2015. "The Effect of Ethnic Diversity on Municipal Spending," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 305-318, September.

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