Rationalizing School Spending: Efficiency, Externalities, and Equity, and Their Connection to Rising Costs
In: Individual and Social Responsibility: Child Care, Education, Medical Care, and Long-Term Care in America
AbstractThe analytical base for much of the current education discussion is built on school attainment simple years of school completed. This choice is convenient for both theoretical and empirical discussions and is undeniably useful in many contexts. Nevertheless, the central focus of current policy deliberation is quality of schooling, not quantity, and the arguments and analysis pertaining to quantity do not readily transfer to quality. The central thesis of this paper is straightforward. Much of the policy discussion about education is built on a poor understanding of the underlying structure of education and schools, but the ambiguities and uncertainties lead to systematic biases toward increased spending on schools. Evidence on high rates of return to investment in quantity of schooling are translated into increased spending aimed at improving quality, yet with little assurance of actual improvement. Similarly, concerns about equity and about externalities from schooling push spending up without satisfying these objectives. A related issue, addressed at the end of the paper, is how citizens view spending in the context of their local districts. Preliminary analysis of voting on school budgets in New York State suggests no systematic relationship between performance of schools (measured in terms of student achievement) and willingness to support proposed budgets.
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.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 6559.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Eric A. Hanushek, . "Rationalizing School Spending: Efficiency, Externalities and Equity, and their Connection to Rising Costs," Wallis Working Papers WP2, University of Rochester - Wallis Institute of Political Economy.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Andrei Shleifer, 1998.
"State versus Private Ownership,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 133-150, Fall.
- Andrei Shleifer, 1998. "State Versus Private Ownership," NBER Working Papers 6665, National Bureau of Economic Research, Inc.
- Andrei Shleifer, 1998. "State Versus Private Ownership," Harvard Institute of Economic Research Working Papers 1841, Harvard - Institute of Economic Research.
- Eric Hanushek & Charles Ka Yui Leung & Kuzey Yilmaz, 2001.
"Redistribution through Education and Other Transfer Mechanisms,"
NBER Working Papers
8588, National Bureau of Economic Research, Inc.
- Hanushek, Eric A. & Leung, Charles Ka Yui & Yilmaz, Kuzey, 2003. "Redistribution through education and other transfer mechanisms," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1719-1750, November.
- Hanushek, Eric & Charles Ka Yui Leung & Kuzey Yilmaz, 2002. "Redistribution through Education and Other Transfer Mechanisms," Royal Economic Society Annual Conference 2002 94, Royal Economic Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.