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.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: I2 - Health, Education, and Welfare - - Education H0 - Public Economics - - General
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