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School expenditures and student achievement: evidence for the United States

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  • Rati Ram
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    Abstract

    Using state-level panel data, this study estimates a simple achievement function in the fixed-effects format to explore further the nexus between school expenditure and student achievement in the United States. Five main points are noted. First, the effect of per-pupil expenditure is positive and carries high statistical significance in some reasonable models. Second, however, the positive estimate is quantitatively modest. Third, the estimates suggest a structural dissimilarity between the models for verbal and mathematics scores on the scholastic assessment test, and the effect of expenditure seems stronger for the latter. Fourth, introduction of state-specific fixed-effects dummies leads to some changes in the pattern of estimates. Fifth, methodologically, despite only minor variations in the variable values over time, the fixed-effects format generates highly significant parameter estimates in most cases. A secondary exploration does not indicate that the effect of expenditures is stronger in low-achievement contexts than in the high-achievement cases.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Education Economics.

    Volume (Year): 12 (2004)
    Issue (Month): 2 ()
    Pages: 169-176

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    Handle: RePEc:taf:edecon:v:12:y:2004:i:2:p:169-176

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    1. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
    2. Eide, Eric & Showalter, Mark H., 1998. "The effect of school quality on student performance: A quantile regression approach," Economics Letters, Elsevier, vol. 58(3), pages 345-350, March.
    3. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," NBER Working Papers 5708, National Bureau of Economic Research, Inc.
    4. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    5. repec:fth:prinin:366 is not listed on IDEAS
    6. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
    7. Mark C. Berger & Eugenia F. Toma, 1994. "Variation in state education policies and effects on student performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(3), pages 477-491.
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    Cited by:
    1. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers 200703, Middle Tennessee State University, Department of Economics and Finance.

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