A Distributional Difference-in-Difference Evaluation of the Response of School Expenditures to Reforms and Tax Limits
AbstractPrior work uses a parametric approach to study the distributional effects of school finance reform and finds evidence that reform yields greater equality of school expenditures by lowering spending in high-spending districts (leveling down) or increasing spending in low-spending districts (leveling up). We develop a kernel density difference-in-difference approach to isolate how tax limits and/or education finance reform affect the full distribution of education expenditures. Simulations of the difference in distributional differences across school finance regimes over time suggest that parametric approaches offer an incomplete description of the distributional impacts of policy changes. Using data for the population of U.S. school districts in 1972, 1982, and 1992, we find that educational reforms and tax limits yield greater equality of expenditures by reducing the number of districts in the tails of the distribution, particularly when both are adopted during the same decade. Our results also suggest that the incompleteness of the parametric descriptions used in prior work can suggest greater variation in the distributional consequences of reform than is actually present. © 2010 American Education Finance Association
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Education Finance and Policy.
Volume (Year): 5 (2010)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.