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What educational production functions really show : a positive theory of education spending

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  • Pritchett, Lant
  • Filmer,Deon

Abstract

The accumulated results of empirical studies show that the public sector typically chooses spending on inputs such that the productivity of additional spending on books and instructional materials is 10 to 100 times larger than that of additional spending on teacher inputs (for example, higher wages, small class size). The authors argue that this pervasive and systemic deviation of actual spending from the technical optimum requires a political, not economic or technical, explanation. The evidence is consistent only with a class of positive models in which public spending choices are directly influenced by a desire for higher spending on teacher inputs, over and above their role in producing educational outputs. This desire could be due either to teacher power, or bureaucratic budget-maximizing behavior, or political patronage. The authors conclude by exploring the implications of these positive political models of educational spending behavior for various types of proposed educational reforms (localized control, parental participation, vouchers, and so on) which requires an examination of how the proposed reforms shift the relative powers of the stakeholders in the educational system: students and parents, educators, bureaucrats, and politicians.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1795.

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Date of creation: 31 Jul 1997
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Handle: RePEc:wbk:wbrwps:1795

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Keywords: Economic Theory&Research; Curriculum&Instruction; Teaching and Learning; Environmental Economics&Policies; Fiscal&Monetary Policy; Curriculum&Instruction; Teaching and Learning; Economic Theory&Research; Environmental Economics&Policies; Gender and Education;

References

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  1. Caroline Minter Hoxby, 1994. "Does Competition Among Public Schools Benefit Students and Taxpayers?," NBER Working Papers 4979, National Bureau of Economic Research, Inc.
  2. Eric A. Hanushek, . "Interpreting Recent Research on Schooling in Developing Countries," Wallis Working Papers WP3, University of Rochester - Wallis Institute of Political Economy.
  3. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
  4. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Working Papers 745, Princeton University, Department of Economics, Industrial Relations Section..
  5. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
  6. Jimenez, Emmanuel & Paqueo, Vicente, 1996. "Do local contributions affect the efficiency of public primary schools?," Economics of Education Review, Elsevier, vol. 15(4), pages 377-386, October.
  7. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1993. "Power, distortions, revolt, and reform in agricultural land relations," Policy Research Working Paper Series 1164, The World Bank.
  8. Hanushek, E.A. & Lavy, V., 1995. "School Quality, Acheivement Bias, and Dropout Behavoiir in Egypt," Papers 107, World Bank - Living Standards Measurement.
  9. Jimenez, E. & Lockheed, M.E., 1995. "Public and Private Secondary Education in Developing Countries. A Comparative Study," World Bank - Discussion Papers 309, World Bank.
  10. repec:fth:prinin:366 is not listed on IDEAS
  11. Edwards, Alejandra Cox, 1989. "Understanding differences in wages relative to income per capita: The case of teachers' salaries," Economics of Education Review, Elsevier, vol. 8(2), pages 197-203, April.
  12. Tan, Jee-Peng & Lane, Julia & Coustere, Paul, 1997. "Putting Inputs to Work in Elementary Schools: What Can Be Done in the Philippines?," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 857-79, July.
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Citations

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Cited by:
  1. Janvier D. Nkurunziza & Floribert Ngaruko, 2002. "Explaining growth in Burundi: 1960-2000," CSAE Working Paper Series 2002-03, Centre for the Study of African Economies, University of Oxford.
  2. Bourguignon, Francois & Rogers, F. Halsey, 2007. "Distributional effects of educational improvements :are we using the wrong model ?," Policy Research Working Paper Series 4427, The World Bank.
  3. Alejandra Mizala & Pilar Romaguera, 2003. "Desafíos metodológicos de los Sistemas de Evaluación e Incentivos en Educación. El caso del SNED en Chile (Methodological challenges for evaluation and incentive systems in education. The case of ," Documentos de Trabajo 159, Centro de Economía Aplicada, Universidad de Chile.
  4. Luiz Felipe Leite Estanislau do Amaral & Naércio Menezes-Filho, 2008. "A Relação entre Gastos Educacionais e Desempenho Escolar," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807201800160, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  5. Nazmul Chaudhury & Jeffrey Hammer & Michael Kremer & Karthik Muralidharan & F. Halsey Rogers, 2006. "Missing in Action: Teacher and Health Worker Absence in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 91-116, Winter.
  6. María Victoria Fazio, 2004. "Incidencia de las Horas Trabajadas en el Rendimiento Académico de Estudiantes Universitarios Argentinos," Department of Economics, Working Papers 052, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  7. María Victoria Fazio, 2004. "Incidencia de las Horas Trabajadas en el Rendimiento Académico de Estudiantes Universitarios Argentinos," CEDLAS, Working Papers 0010, CEDLAS, Universidad Nacional de La Plata.
  8. Emiliana Vegas & Ilana Umansky, 2005. "Improving Teaching and Learning through Effective Incentives : What Can We Learn from Education Reforms in Latin America?," World Bank Other Operational Studies 8694, The World Bank.
  9. Harriet Nannyonjo, 2007. "Education Inputs In Uganda : An Analysis of Factors Influencing Learning Achievement in Grade Six," World Bank Publications, The World Bank, number 6758, October.
  10. Nancy Vandycke, 2001. "Access to Education for the Poor in Europe and Central Asia : Preliminary Evidence and Policy Implications," World Bank Publications, The World Bank, number 13974, October.
  11. Deolalikar, Anil & Hasan, Rana & Khan, Haider & Quibria, M.G., 1997. "Competiveness and Human Resource Development," MPRA Paper 2819, University Library of Munich, Germany, revised 1997.
  12. Ablo, Emmanuel & Reinikka, Ritva, 1998. "Do budgets really matter? - evidence from public spending on education and health in Uganda," Policy Research Working Paper Series 1926, The World Bank.
  13. E. Jenkner & Arye L. Hillman, 2002. "User Payments for Basic Education in Low-Income Countries," IMF Working Papers 02/182, International Monetary Fund.

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