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Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts

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  • Jonathan Guryan

Abstract

The paper studies a typical state-level education finance equalization scheme, and considers two questions. First, what fraction of state education aid is spent on schools? And second, does increased educational funding for historically low-spending districts lead to improved student achievement? Estimates based on variation in spending caused by state aid formulas suggest that 50 to 75 cents of each dollar of education aid were spent on schools. Estimates also suggest that increased spending improved 4 th -grade test scores, but show no effect on 8 th -grade test scores. Further analysis shows that increases in 4 th -grade average test scores were associated with improved performance by low-scoring students.

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File URL: http://www.nber.org/papers/w8269.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8269.

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Date of creation: May 2001
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Handle: RePEc:nbr:nberwo:8269

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  1. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
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