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Does it pay to get an A? School resource allocations in response to accountability ratings

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  • Craig, Steven G.
  • Imberman, Scott A.
  • Perdue, Adam

Abstract

This paper examines public school district budgetary responses to school accountability ratings. We identify school district budgetary changes through a “rating shock” due to a major change in school accountability systems in Texas. Texas implemented a new accountability system and new exam, and allowed schools a “gap” year to adjust to the new test. Using the new Texas exam as an exogenous change, we find a 1.5% increase in instructional budgets, mainly for teachers, as a response to a drop in rating. This increase is found to disappear within 3years, suggesting temporary budget support to “learn” the new system but no long run institutional change.

Suggested Citation

  • Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2013. "Does it pay to get an A? School resource allocations in response to accountability ratings," Journal of Urban Economics, Elsevier, vol. 73(1), pages 30-42.
  • Handle: RePEc:eee:juecon:v:73:y:2013:i:1:p:30-42
    DOI: 10.1016/j.jue.2012.07.002
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    References listed on IDEAS

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    1. Figlio, David N. & Rouse, Cecilia Elena, 2006. "Do accountability and voucher threats improve low-performing schools?," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 239-255, January.
    2. Marigee Bacolod & John DiNardo & Mireille Jacobson, 2011. "Beyond Incentives: Do Schools Use Accountability Rewards Productively?," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 149-163, June.
    3. Figlio, David N., 2006. "Testing, crime and punishment," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 837-851, May.
    4. Rajashri Chakrabarti, 2013. "Vouchers, Public School Response, And The Role Of Incentives: Evidence From Florida," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 500-526, January.
    5. Figlio, David N. & Winicki, Joshua, 2005. "Food for thought: the effects of school accountability plans on school nutrition," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 381-394, February.
    6. David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
    7. Derek Neal & Diane Whitmore Schanzenbach, 2010. "Left Behind by Design: Proficiency Counts and Test-Based Accountability," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 263-283, May.
    8. Chakrabarti Rajashri, 2013. "Impact of Voucher Design on Public School Performance: Evidence from Florida and Milwaukee Voucher Programs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(1), pages 349-394, July.
    9. Eric A. Hanushek & Margaret E. Raymond, 2005. "Does school accountability lead to improved student performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 297-327.
    10. repec:mpr:mprres:6364 is not listed on IDEAS
    11. Jonah Rockoff & Lesley J. Turner, 2010. "Short-Run Impacts of Accountability on School Quality," American Economic Journal: Economic Policy, American Economic Association, vol. 2(4), pages 119-147, November.
    12. Julie Berry Cullen & Randall Reback, 2006. "Tinkering Toward Accolades: School Gaming Under a Performance Accountability System," NBER Working Papers 12286, National Bureau of Economic Research, Inc.
    13. Reback, Randall, 2008. "Teaching to the rating: School accountability and the distribution of student achievement," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1394-1415, June.
    14. Eric A. Hanushek & Margaret E. Raymond, 2004. "The Effect of School Accountability Systems on the Level and Distribution of Student Achievement," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 406-415, 04/05.
    15. Figlio, David N. & Kenny, Lawrence W., 2009. "Public sector performance measurement and stakeholder support," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1069-1077, October.
    16. Hanley Chiang, "undated". "How Accountability Pressure on Failing Schools Affects Student Achievement," Mathematica Policy Research Reports c58a3b537e324447b94a2bd41, Mathematica Policy Research.
    17. 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.
    18. Jacob, Brian A., 2005. "Accountability, incentives and behavior: the impact of high-stakes testing in the Chicago Public Schools," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 761-796, June.
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    Cited by:

    1. Pierre Koning & Karen Wiel, 2012. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," De Economist, Springer, vol. 160(4), pages 339-355, December.
    2. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    3. Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2015. "Do administrators respond to their accountability ratings? The response of school budgets to accountability grades," Economics of Education Review, Elsevier, vol. 49(C), pages 55-68.
    4. repec:eee:pubeco:v:158:y:2018:i:c:p:48-62 is not listed on IDEAS
    5. repec:eee:juecon:v:100:y:2017:i:c:p:54-64 is not listed on IDEAS
    6. Betts, Julian R. & Hahn, Youjin & Zau, Andrew C., 2017. "Can testing improve student learning? An evaluation of the mathematics diagnostic testing project," Journal of Urban Economics, Elsevier, vol. 100(C), pages 54-64.

    More about this item

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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