Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination
AbstractThe model successfully fits key endogenous outcomes as observed in the data: 1) charter schools enter larger markets and markets where they would have higher per-pupil resources, 2) charter schools and public schools in markets in which charter schools are present both choose higher input levels than public schools in markets where there are no charters, and 3) charter schools have the highest average test scores, followed by public schools in markets with charter school competition, followed by public schools in monopoly markets. I use the estimated model to simulate changes in the test score distribution for three counterfactual scenarios: 1) ban charter schools, 2) lift the currently binding statewide cap on the number of charter schools, and 3) equate charter and public school per-pupil resources. In the first and second counterfactuals, charter school entry increases test scores for students who would attend charters by one fifth of a standard deviation. Test scores for public school students in markets with charter schools increase marginally. Equating charter and public school capital triples the fraction of markets with charters and increases the test scores of students attending charters over the monopoly outcome by an even larger amount.
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2012 Meeting Papers with number 42.
Date of creation: 2012
Date of revision:
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Other versions of this item:
- Nirav Mehta, 2012. "Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20123, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- I20 - Health, Education, and Welfare - - Education - - - General
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-13 (All new papers)
- NEP-EDU-2012-10-13 (Education)
- NEP-URE-2012-10-13 (Urban & Real Estate Economics)
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