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Do school resources increase school quality ?

  • Nadir Altinok

The aim of this paper is to verify whether school resource factors have an impact on the quality of education. This latter is measured with the help of a unique database on student scores in international skills tests. The general difficulties inherent in this type of study are the possibility of endogeneity bias and measurement errors. After estimation bias correction, we show that improvement in the quality of educational systems does not necessarily require an increase in school resources. When an alternative indicator of the performance of educational systems is used, our results are confirmed. Consequently, one should remain cautious about recommending purely financial measures to improve quality of education.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/77432/1/ARTICLE%20ALTINOKpdf.pdf
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Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 51 (2008)
Issue (Month): 4 ()
Pages: 435-458

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Handle: RePEc:bxr:bxrceb:2013/77432
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  1. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
  2. Dennis D. Kimko & Eric A. Hanushek, 2000. "Schooling, Labor-Force Quality, and the Growth of Nations," American Economic Review, American Economic Association, vol. 90(5), pages 1184-1208, December.
  3. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  4. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
  5. Lee, J.-W. & Barro, R.J., 1998. "Schooling Quality in a Cross Section of Countries," Papers 659, Harvard - Institute for International Development.
  6. Al-Samarrai, Samer, 2002. "Achieving education for all: How much does money matter?," MPRA Paper 118, University Library of Munich, Germany.
  7. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  8. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-23, May.
  9. Eric A. Hanushek & Javier A. Luque, 2002. "Efficiency and Equity in Schools around the World," NBER Working Papers 8949, National Bureau of Economic Research, Inc.
  10. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
  11. repec:cup:cbooks:9780521873161 is not listed on IDEAS
  12. Altinok, Nadir & Murseli, Hatidje, 2007. "International database on human capital quality," Economics Letters, Elsevier, vol. 96(2), pages 237-244, August.
  13. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
  14. Marijn Verhoeven & Sanjeev Gupta & Erwin Tiongson, 1999. "Does Higher Government Spending Buy Better Results in Education and Health Care?," IMF Working Papers 99/21, International Monetary Fund.
  15. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  16. McCallum, B T, 1972. "Relative Asymptotic Bias from Errors of Omission and Measurement," Econometrica, Econometric Society, vol. 40(4), pages 757-58, July.
  17. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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