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Strategic Competition Amongst Public Schools

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  • Daniel Millimet; Vasudha Rangaprasad

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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Bibliographic Info

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

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References

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Citations

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Cited by:
  1. Millimet, Daniel L. & Collier, Trevor, 2008. "Efficiency in public schools: Does competition matter?," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 134-157, July.
  2. Winters, John V, 2010. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," MPRA Paper 21202, University Library of Munich, Germany.
  3. Isen, Adam, 2014. "Do local government fiscal spillovers exist? Evidence from counties, municipalities, and school districts," Journal of Public Economics, Elsevier, vol. 110(C), pages 57-73.
  4. David Card & Martin D. Dooley & A. Abigail Payne, 2010. "School Competition and Efficiency with Publicly Funded Catholic Schools," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 150-76, October.
  5. Jon H. Fiva & Marte Rønning, 2006. "The Incentive Effects of Property Taxation: Evidence from Norwegian School Districts," Discussion Papers 484, Research Department of Statistics Norway.
  6. Marte Rønning & Jon Hernes Fiva, 2004. "Property Taxation as a Determinant of School District Efficiency," Working Paper Series 5105, Department of Economics, Norwegian University of Science and Technology, revised 14 Jul 2005.
  7. David M. Brasington, . "Public and Private School Competition: The Spatial Education Production Function," Departmental Working Papers 2005-09, Department of Economics, Louisiana State University.
  8. Patrick Bayer & Robert McMillan, 2005. "Choice and Competition in Local Education Markets," NBER Working Papers 11802, National Bureau of Economic Research, Inc.
  9. Edmark, Karin, 2007. "Strategic competition in Swedish local spending on childcare, schooling and care for the elderly," Working Paper Series 2007:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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