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Abstract

We analyze the effect of school expenditure on children's test scores at age 16 by means of an education production model. By using unique register data of English pupils, we exploit the availability of test scores across time, subjects and siblings to control for various sources of input omission and measurement error bias. We overcome one of the main criticisms against the value-added model by proposing a novel method to control for the endogeneity of the lagged test. We find evidence of a positive but small effect of per pupil expenditure on test scores.

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File URL: http://www.york.ac.uk/media/economics/documents/discussionpapers/2012/1219.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of York in its series Discussion Papers with number 12/19.

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Date of creation: Jul 2012
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Handle: RePEc:yor:yorken:12/19

Contact details of provider:
Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Email:
Web page: http://www.york.ac.uk/economics/
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Related research

Keywords: Education production function; cognitive achievements; child development;

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Find related papers by JEL classification:

• I22 - Health, Education, and Welfare - - Education - - - Educational Finance
• I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

This paper has been announced in the following NEP Reports:

• NEP-ALL-2012-07-29 (All new papers)
• NEP-EDU-2012-07-29 (Education)
• NEP-LAB-2012-07-29 (Labour Economics)

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1. Stephen Gibbons & Sandra McNally & Martina Viarengo, 2011. "Does Additional Spending Help Urban Schools? An Evaluation Using Boundary Discontinuities," CEE Discussion Papers 0128, Centre for the Economics of Education, LSE.
   
   • Stephen Gibbons & Sandra McNally & Martina Viarengo, 2011. "Does Additional Spending Help Urban Schools? An Evaluation Using Boundary Discontinuities," SERC Discussion Papers 0090, Spatial Economics Research Centre, LSE.
   • Gibbons, Steve & McNally, Sandra & Viarengo, Martina, 2012. "Does Additional Spending Help Urban Schools? An Evaluation Using Boundary Discontinuities," IZA Discussion Papers 6281, Institute for the Study of Labor (IZA).
2. Andrabi, Tahir & Das, Jishnu & Khwaja, Asim Ijaz & Zajonc, Tristan, 2009. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," Working Paper Series rwp09-034, Harvard University, John F. Kennedy School of Government.
   
   • Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja & Tristan Zajonc, 2011. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 29-54, July.
   • Khwaja, Asim Ijaz & Andrabi, Tahir & Das, Jishnu & Zajonc, Tristan, 2009. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," Scholarly Articles 4435671, Harvard Kennedy School of Government.
   • Andrabi, Tahir & Das, Jishnu & Khwaja, Asim Ijaz & Zajonc, Tristan, 2009. "Do value-added estimates add value ? accounting for learning dynamics," Policy Research Working Paper Series 5066, The World Bank.
3. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
   
   • Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.

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