When can school inputs improve test scores?
AbstractThe relationship between school inputs and educational outcomes is critical for educational policy. The authors recognize that households will respond optimally to changes in school inputs and study how such responses affect the link between school inputs and cognitive achievement. To incorporate the forward-looking behavior of households, the authors present a household optimization model relating household resources and cognitive achievement to school inputs. In this framework, if household and school inputs are technical substitutes in the production function for cognitive achievement, the impact of unanticipated inputs is larger than that of anticipated inputs. The authors test the predictions of the model for nonsalary cash grants to schools using a unique data set from Zambia. They find that household educational expenditures and school cash grants are substitutes with a coefficient of elasticity between -0.35 and -0.52. Consistent with the optimization model, anticipated funds have no impact on cognitive achievement, but unanticipated funds lead to significant improvements in learning. This methodology has important implications for educational research and policy.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3217.
Date of creation: 01 Feb 2004
Date of revision:
Housing&Human Habitats; Environmental Economics&Policies; Teaching and Learning; Economic Theory&Research; Economic Conditions and Volatility; Economics of Education;
Other versions of this item:
- Stefan Dercon, 2004. "When Can School Inputs Improve Test Scores?," Economics Series Working Papers WPS/2004-25, University of Oxford, Department of Economics.
- Das, J. & Dercon, S. & Habyarimana, J. & Krishnan, P., 2004. "‘When Can School Inputs Improve Test Scores?’," Cambridge Working Papers in Economics 0437, Faculty of Economics, University of Cambridge.
- Jishnu Das & Stefan Dercon & James Habyarimana & Pramila Krishnan, 2004. "When Can School Inputs Improve Test Scores?," CSAE Working Paper Series 2004-25, Centre for the Study of African Economies, University of Oxford.
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
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