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A theory of dynamic investment in education in response to accountability pressure

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  • Ahn, Tom

Abstract

While well-implemented accountability systems are effective in inducing sharp test scores gains after intervention, it remains a mystery why such schools with the technical capacity to improve would allow productivity to decline to the point of sanction in the first place. We present a theory of dynamic investment where schools look forward and rationally choose the timing of reforms to increase achievement at the point of sanctions. Theory shows that policy makers must select the strength of sanctions carefully to maximize education production. Regression discontinuity analysis of a merit-pay system in North Carolina corroborates the theory.

Suggested Citation

  • Ahn, Tom, 2016. "A theory of dynamic investment in education in response to accountability pressure," Economics Letters, Elsevier, vol. 149(C), pages 75-78.
    • Handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:75-78
    DOI: 10.1016/j.econlet.2016.10.013
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    References listed on IDEAS

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    1. repec:mpr:mprres:6364 is not listed on IDEAS
    2. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor & Roger Aliaga Diaz, 2004. "Do school accountability systems make it more difficult for low-performing schools to attract and retain high-quality teachers?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(2), pages 251-271.
    3. Chiang, Hanley, 2009. "How accountability pressure on failing schools affects student achievement," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1045-1057, October.
    4. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    5. Hanley Chiang, "undated". "How Accountability Pressure on Failing Schools Affects Student Achievement," Mathematica Policy Research Reports c58a3b537e324447b94a2bd41, Mathematica Policy Research.
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    More about this item

    Keywords

    Education; Accountability; Dynamic investment;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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