IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v93y2009i9-10p1069-1077.html
   My bibliography  Save this article

Public sector performance measurement and stakeholder support

Author

Listed:
  • Figlio, David N.
  • Kenny, Lawrence W.

Abstract

Over the past several decades there has been dramatically increased attention paid to measuring the performance of public sector and nonprofit organizations in the United States and elsewhere. Recent research has indicated that public sector and nonprofit organizations are responsive to performance measurement in both productive and unproductive ways. However, it is not yet known how stakeholders respond to this measurement. This paper makes use of a unique panel survey dataset of the population of elementary and middle schools in the state of Florida to directly investigate this question. We exploit the fact that Florida changed its school grading system in 2002 and study the degree to which private contributions to schools are responsive to the information contained in school grades. We find evidence that school grades can have substantial effects on a school's ability to obtain private contributions. We also observe that schools serving different clienteles are treated differently in response to changes in school grades.

Suggested Citation

  • Figlio, David N. & Kenny, Lawrence W., 2009. "Public sector performance measurement and stakeholder support," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1069-1077, October.
  • Handle: RePEc:eee:pubeco:v:93:y:2009:i:9-10:p:1069-1077
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047-2727(09)00086-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 747-782.
    2. Figlio, David N., 2006. "Testing, crime and punishment," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 837-851, May.
    3. Xavier Gabaix & David Laibson & Guillermo Moloche & Stephen Weinberg, 2006. "Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model," American Economic Review, American Economic Association, vol. 96(4), pages 1043-1068, September.
    4. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    5. Cecilia Elena Rouse & Jane Hannaway & Dan Goldhaber & David Figlio, 2013. "Feeling the Florida Heat? How Low-Performing Schools Respond to Voucher and Accountability Pressure," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 251-281, May.
    6. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect of Information on Product Quality: Evidence from Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 409-451.
    7. David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
    8. Figlio, David N. & Kenny, Lawrence W., 2007. "Individual teacher incentives and student performance," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 901-914, June.
    9. Leemore Dafny & David Dranove, 2008. "Do report cards tell consumers anything they don't already know? The case of Medicare HMOs," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 790-821, September.
    10. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    11. David A. Reinstein & Christopher M. Snyder, 2005. "The Influence Of Expert Reviews On Consumer Demand For Experience Goods: A Case Study Of Movie Critics," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 27-51, March.
    12. Vidhi Chhaochharia & Suman Ghosh, 2008. "Do Charity Ratings Matter?," Working Papers 08001, Department of Economics, College of Business, Florida Atlantic University.
    13. Ginger Zhe Jin & Alex Whalley, 2007. "The Power of Attention: Do Rankings Affect the Financial Resources of Public Colleges?," NBER Working Papers 12941, National Bureau of Economic Research, Inc.
    14. Justine S. Hastings & Jeffrey M. Weinstein, 2008. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(4), pages 1373-1414.
    15. Cecilia Elena Rouse & Jane Hannaway & Dan Goldhaber & David Figlio, 2013. "Feeling the Florida Heat? How Low-Performing Schools Respond to Voucher and Accountability Pressure," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 251-281, May.
    16. repec:pri:edures:24ers.pdf is not listed on IDEAS
    17. Brunner, Eric & Sonstelie, Jon, 2003. "School finance reform and voluntary fiscal federalism," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2157-2185, September.
    18. repec:pri:cepsud:156rouse is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Camargo, Braz & Camelo, Rafael & Firpo, Sergio & Ponczek, Vladimir, 2014. "Information, Market Incentives, and Student Performance," IZA Discussion Papers 7941, Institute of Labor Economics (IZA).
    2. Seth Gershenson, 2016. "Performance Standards and Employee Effort: Evidence From Teacher Absences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 615-638, June.
    3. Radygin, Alexander & Entov, Revold, 2013. ""Fundamental" theorem of privatization: ideology, evolution, practice," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 7-45, December.
    4. Seth Gershenson & Stephen B. Holt & Nicholas Papageorge, 2015. "Who Believes in Me? The Effect of Student-Teacher Demographic Match on Teacher Expectations," Upjohn Working Papers 15-231, W.E. Upjohn Institute for Employment Research.
    5. Onrubia-Fernández, Jorge & Fuentes, Antonio Jesús, 2017. "How costly are public sector inefficiencies? A theoretical framework for rationalising fiscal consolidations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-19.
    6. Kardina Kamaruddin & Indra Abeysekera, 2021. "Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    7. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    8. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
    9. 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.
    10. Jorge Onrubia-Fernández & A. Jesús Sánchez-Fuentes, 2014. "How costly are the public sector ineffiencies? An integrated theoretical framework for its welfare assessment," Working Papers. Collection A: Public economics, governance and decentralization 1407, Universidade de Vigo, GEN - Governance and Economics research Network.
    11. Collins-Camargo, Crystal & Chuang, Emmeline & McBeath, Bowen & Bunger, Alicia C., 2014. "Private child welfare agency managers' perceptions of the effectiveness of different performance management strategies," Children and Youth Services Review, Elsevier, vol. 38(C), pages 133-141.
    12. Andrew McEachin & Allison Atteberry, 2017. "The Impact of Summer Learning Loss on Measures of School Performance," Education Finance and Policy, MIT Press, vol. 12(4), pages 468-491, Fall.
    13. Alexander Radygin & Revold Entov, 2014. "The Fundamental Privatization Theorem: Ideology, Evolution, Practice," Working Papers 0087, Gaidar Institute for Economic Policy, revised 2014.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    2. Rezende, Marcelo, 2010. "The effects of accountability on higher education," Economics of Education Review, Elsevier, vol. 29(5), pages 842-856, October.
    3. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
    4. Pierre Koning & Karen Wiel, 2012. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," De Economist, Springer, vol. 160(4), pages 339-355, December.
    5. Lovenheim, Michael F. & Walsh, Patrick, 2018. "Does choice increase information? Evidence from online school search behavior," Economics of Education Review, Elsevier, vol. 62(C), pages 91-103.
    6. Rajashri Chakrabarti, 2013. "Accountability with Voucher Threats, Responses, and the Test-Taking Population: Regression Discontinuity Evidence from Florida," Education Finance and Policy, MIT Press, vol. 8(2), pages 121-167, April.
    7. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja, 2017. "Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets," American Economic Review, American Economic Association, vol. 107(6), pages 1535-1563, June.
    8. Krieg, John M., 2011. "Which students are left behind? The racial impacts of the No Child Left Behind Act," Economics of Education Review, Elsevier, vol. 30(4), pages 654-664, August.
    9. Pope, Devin G., 2009. "Reacting to rankings: Evidence from "America's Best Hospitals"," Journal of Health Economics, Elsevier, vol. 28(6), pages 1154-1165, December.
    10. 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.
    11. Anya Samek & Roman M. Sheremeta, 2016. "When Identifying Contributors is Costly: An Experiment on Public Goods," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 801-808, January.
    12. Jonah E. Rockoff & Douglas O. Staiger & Thomas J. Kane & Eric S. Taylor, 2012. "Information and Employee Evaluation: Evidence from a Randomized Intervention in Public Schools," American Economic Review, American Economic Association, vol. 102(7), pages 3184-3213, December.
    13. Cuesta, José Ignacio & González, Felipe & Larroulet Philippi, Cristian, 2020. "Distorted quality signals in school markets," Journal of Development Economics, Elsevier, vol. 147(C).
    14. Jane Friesen & Mohsen Javdani & Justin Smith & Simon Woodcock, 2012. "How do school ‘report cards’ affect school choice decisions?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(2), pages 784-807, May.
    15. Chiang, Hanley, 2009. "How accountability pressure on failing schools affects student achievement," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1045-1057, October.
    16. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    17. Michael Hurwitz & Jonathan Smith, 2018. "Student Responsiveness To Earnings Data In The College Scorecard," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1220-1243, April.
    18. Tae Jung Yoon, 2020. "Quality Information Disclosure and Patient Reallocation in the Healthcare Industry: Evidence from Cardiac Surgery Report Cards," Marketing Science, INFORMS, vol. 39(3), pages 636-662, May.
    19. Miguel Duro & Jonas Heese & Gaizka Ormazabal, 2019. "The effect of enforcement transparency: Evidence from SEC comment-letter reviews," Review of Accounting Studies, Springer, vol. 24(3), pages 780-823, September.
    20. Ericson, Keith M. Marzilli & Starc, Amanda, 2016. "How product standardization affects choice: Evidence from the Massachusetts Health Insurance Exchange," Journal of Health Economics, Elsevier, vol. 50(C), pages 71-85.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:93:y:2009:i:9-10:p:1069-1077. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.