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Institutional Effects in a Simple Model of Educational Production

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Author Info
Bishop, John H. (Cornell University)
Ludger Woessmann (Kiel Institute of World Economics)

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Abstract

The paper presents a model of educational production which tries to make sense of recent evidence on effects of institutional arrangements on student performance. In a simple principal-agent framework, students choose their learning effort to maximize their net benefits, while the government chooses educational spending to maximize its net benefits. In the jointly determined equilibrium, schooling quality is shown to depend on several institutionally determined parameters. The impact on student performance of institutions such as central examinations, centralization versus school autonomy, teachers' influence, parental influence, and competition from private schools is analyzed. Furthermore, the model can rationalize why positive resource effects may be lacking in educational production.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 29.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:29

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Web page: http://www.res.org.uk/society/annualconf.asp
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andrei Shleifer, 1998. "State Versus Private Ownership," NBER Working Papers 6665, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Eric A. Hanushek, . "The Evidence on Class Size," Wallis Working Papers WP10, University of Rochester - Wallis Institute of Political Economy. [Downloadable!]
  4. Eric A. Hanushek & John F. Kain & Jacob M. Markman & Steven G. Rivkin, 2001. "Does Peer Ability Affect Student Achievement?," NBER Working Papers 8502, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May. [Downloadable!] (restricted)
  6. Hoxby, Caroline Minter, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 671-718, August. [Downloadable!] (restricted)
  7. Cecilia Elena Rouse, 1998. "Private School Vouchers And Student Achievement: An Evaluation Of The Milwaukee Parental Choice Program," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 553-602, May. [Downloadable!] (restricted)
  8. Pritchett, Lant & Filmer, Deon, 1999. "What education production functions really show: a positive theory of education expenditures," Economics of Education Review, Elsevier, vol. 18(2), pages 223-239, April. [Downloadable!] (restricted)
  9. Hoxby, Caroline M., 1999. "The productivity of schools and other local public goods producers," Journal of Public Economics, Elsevier, vol. 74(1), pages 1-30, October. [Downloadable!] (restricted)
  10. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September. [Downloadable!] (restricted)
  13. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 777-803, August. [Downloadable!] (restricted)
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  14. Alan B. Krueger, 1999. "Experimental Estimates Of Education Production Functions," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 497-532, May. [Downloadable!] (restricted)
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  15. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-68, June.
  16. Bishop, J., 1997. "The Effect of national Standards and Curriculum-Based Exams on Achievement," Papers 97-01, Cornell - Center for Advanced Human Resource Studies.
  17. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March. [Downloadable!] (restricted)
  18. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December. [Downloadable!] (restricted)
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  19. Bishop, John H, 1997. "The Effect of National Standards and Curriculum-Based Exams on Achievement," American Economic Review, American Economic Association, vol. 87(2), pages 260-64, May. [Downloadable!] (restricted)
  20. Betts, Julian R, 1998. "The Impact of Educational Standards on the Level and Distribution of Earnings," American Economic Review, American Economic Association, vol. 88(1), pages 266-75, March. [Downloadable!] (restricted)
  21. Caroline M. Hoxby, 2000. "The Effects Of Class Size On Student Achievement: New Evidence From Population Variation," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1239-1285, November. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ludger Woessmann, 2003. "Central Exams as the "Currency" of School Systems: International Evidence on the Complementarity of School Autonomy and Central Exams," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 1(4), pages 46-56, 02. [Downloadable!]
  2. Gianna Barbieri & Piero Cipollone & Paolo Sestito, 2008. "Labour market for teachers: Demographic characteristics and allocative mechanisms," Temi di discussione (Economic working papers) 672, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  3. Thomas Fuchs & Ludger Woessmann, 2004. "What Accounts for International Differences in Student Performance? A Re-Examination Using PISA Data," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Andreas Ammermueller, 2007. "PISA: What makes the difference?," Empirical Economics, Springer, vol. 33(2), pages 263-287, September. [Downloadable!] (restricted)
    Other versions:
  5. De Paola, Maria & Scoppa, Vincenzo, 2008. "A signalling model of school grades: centralized versus decentralized examinations," MPRA Paper 7866, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  6. David Tobón Orozco & Héctor Mauricio Posada Duque & Paul Ríos, 2009. "Determinants of the performance of the schools in Medellín in the high-school graduation-year test (ICFES)," Grupo de Microeconomía Aplicada 0045, Universidad de Antioquia, Departamento de Economía. [Downloadable!]
  7. Ludger Woessmann, 2004. "The Effect Heterogeneity of Central Exams: Evidence from TIMSS, TIMSS-Repeat and PISA," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  8. Ludger Woessmann, 2007. "Fundamental Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  9. Jean Bourdon & Markus Frölich & Katharina Michaelowa, 2007. "Teacher Shortages, Teacher Contracts and their Impacton Education in Africa," Post-Print halshs-00150147_v1, HAL. [Downloadable!]
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  10. Trevor Collier & Daniel Millimet, 2009. "Institutional arrangements in educational systems and student achievement: a cross-national analysis," Empirical Economics, Springer, vol. 37(2), pages 329-381, October. [Downloadable!] (restricted)
  11. Alvarez, Jesus & Moreno, Vicente Garcia & Patrinos, Harry Anthony, 2007. "Institutional effects as determinants of learning outcomes : exploring state variations in Mexico," Policy Research Working Paper Series 4286, The World Bank. [Downloadable!]
  12. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers 200703, Middle Tennessee State University, Department of Economics and Finance. [Downloadable!]
  13. Ammermüller, Andreas, 2004. "PISA: What Makes the Difference? : Explaining the Gap in PISA Test Scores Between Finland and Germany," ZEW Discussion Papers 04-04, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  14. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer, vol. 15(2), pages 199-230, April. [Downloadable!] (restricted)
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  15. David Tobón Orozco & Paul Rios, 2009. "Herramientas Multiobjetivo," Grupo de Microeconomía Aplicada 0001, Universidad de Antioquia, Departamento de Economía. [Downloadable!]
  16. M. De Paola & V. Scoppa, 2007. "Returns to skills, incentives to study and optimal educational standards," Journal of Economics, Springer, vol. 92(3), pages 229-262, December. [Downloadable!] (restricted)
  17. Ludger Woessmann, 2006. "Public-Private Partnership and Schooling Outcomes across Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  18. Sherrilyn M. Billger, 2007. "Principal Accountability at Private Secondary Schools," IZA Discussion Papers 3162, Institute for the Study of Labor (IZA). [Downloadable!]
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