Property Taxation as a Determinant of School District Efficiency
AbstractRecent theoretical contributions have emphasized the favorable incentive effects of property taxation. The object of this paper is to confront these theories with Norwegian data on student performance. The institutional setting in Norway is well suited to analyzing the effects of property taxation because we can compare school districts with and without property taxation. In addition, we focus on an alternative incentive mechanism - competition between school districts. The empirical results indicate that students in school districts that levy residential property taxes perform better at the national examination than students in comparable school districts. Strategic interaction in school quality is present, but the magnitude of the interaction effect is modest.
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Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 5105.
Length: 29 pages
Date of creation: 01 Aug 2004
Date of revision: 14 Jul 2005
Student achievement; efficiency; property taxation; competition; spatial auto-regressive model;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-17 (All new papers)
- NEP-GEO-2005-09-17 (Economic Geography)
- NEP-PBE-2005-09-17 (Public Economics)
- NEP-PUB-2005-09-17 (Public Finance)
- NEP-URE-2005-09-17 (Urban & Real Estate Economics)
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