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Does it pay to get an A? School resource allocations in response to accountability ratings

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  • Craig, Steven G.
  • Imberman, Scott A.
  • Perdue, Adam

Abstract

This paper examines public school district budgetary responses to school accountability ratings. We identify school district budgetary changes through a “rating shock” due to a major change in school accountability systems in Texas. Texas implemented a new accountability system and new exam, and allowed schools a “gap” year to adjust to the new test. Using the new Texas exam as an exogenous change, we find a 1.5% increase in instructional budgets, mainly for teachers, as a response to a drop in rating. This increase is found to disappear within 3years, suggesting temporary budget support to “learn” the new system but no long run institutional change.

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  • Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2013. "Does it pay to get an A? School resource allocations in response to accountability ratings," Journal of Urban Economics, Elsevier, vol. 73(1), pages 30-42.
    • Handle: RePEc:eee:juecon:v:73:y:2013:i:1:p:30-42
    DOI: 10.1016/j.jue.2012.07.002
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    2. Betts, Julian R. & Hahn, Youjin & Zau, Andrew C., 2017. "Can testing improve student learning? An evaluation of the mathematics diagnostic testing project," Journal of Urban Economics, Elsevier, vol. 100(C), pages 54-64.
    3. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    4. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    5. Jacobus Cilliers & Isaac M. Mbiti & Andrew Zeitlin, 2021. "Can Public Rankings Improve School Performance?: Evidence from a Nationwide Reform in Tanzania," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 655-685.
    6. Michah W. Rothbart, 2020. "The Impact of School Choice on Public School Budgets: Evidence From Open Enrollment in New York City," Public Budgeting & Finance, Wiley Blackwell, vol. 40(4), pages 3-37, December.
    7. Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2015. "Do administrators respond to their accountability ratings? The response of school budgets to accountability grades," Economics of Education Review, Elsevier, vol. 49(C), pages 55-68.

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    More about this item

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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