Institutional Effects in a Simple Model of Educational Production
AbstractThe 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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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1085.
Length: 34 pages
Date of creation: Nov 2001
Date of revision:
educational production; principal-agent model; institutions of the education system;
Other versions of this item:
- John Bishop & Ludger Wossmann, 2004. "Institutional Effects in a Simple Model of Educational Production," Education Economics, Taylor and Francis Journals, vol. 12(1), pages 17-38.
- Bishop, John H. & Ludger Woessmann, 2002. "Institutional Effects in a Simple Model of Educational Production," Royal Economic Society Annual Conference 2002 29, Royal Economic Society.
- Bishop, John H. & Woessmann, Ludger, 2002. "Institutional Effects in a Simple Model of Educational Production," IZA Discussion Papers 484, Institute for the Study of Labor (IZA).
- I20 - Health, Education, and Welfare - - Education - - - General
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
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