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Strategic Competition Amongst Public Schools

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Author Info
Daniel Millimet; Vasudha Rangaprasad

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Abstract

Researchers, policymakers, and parents are giving education reforms involving expanded school choice increased attention. Many view the heightened competition that would presumably result from such reforms as a panacea for the ills currently plaguing the public education system in the US. However, the present system is not devoid of competition even absent such reforms; public schools compete for students through the Tiebout (1956) process. Thus, this papers seeks to answer two questions: (i) Does competition alter the behavior of public school districts? and (ii) Do public school districts compete with neighboring public school districts? To answer such questions, we utilize panel data from Illinois over the period 1990 � 2000 and estimate a multi-dimensional mixed regressive, spatial autoregressive model. We find robust evidence that public school districts incorporate the educational input decisions of other public school districts in the same county into their decision calculus, thereby acting strategically when setting own input levels

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Paper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 197.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:nasm04:197

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Related research
Keywords: School quality; School choice; Tiebout; Spatial autocorrelation;

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Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
H4 - Public Economics - - Publicly Provided Goods
I2 - Health, Education, and Welfare - - Education

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Full references

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. David M. Brasington, . "Public and Private School Competition: The Spatial Education Production Function," Departmental Working Papers 2005-09, Department of Economics, Louisiana State University. [Downloadable!]
  2. Patrick Bayer & Robert McMillan, 2005. "Choice and Competition in Local Education Markets," NBER Working Papers 11802, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Edmark, Karin, 2007. "Strategic Competition in Swedish Local Spending on Childcare, Schooling and Care for the Elderly," Working Paper Series 2007:21, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
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