A spatial merger estimator with an application to school district consolidation
This paper develops a spatial merger estimator to explain political integration generally and then applies this method to a wave of school district mergers in the state of Iowa during the 1990s. Our estimator is rooted in the economics of matching and thus accounts for three important features of typical merger protocol: two-sided decision making, multiple potential partners, and spatial interdependence. Rather than simply explaining when a particular region is likely to experience a wave of political integration, our method allows us to explore the factors driving which specific subregional mergers take place. This allows us to explore how those districts that merge choose with which of their neighbors to do so. Our results highlight the importance of state financial incentives for consolidation, economies of scale, diseconomies of scale, and a variety of heterogeneity measures in this particular application. We also demonstrate the power of our estimator, relative to existing estimators, to detect a statistically significant role for heterogeneity factors. While our application is limited to school district consolidation, our method can be adapted to include the salient features of many spatial integration problems.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
- Chung, Kim-Sau, 2000. "On the Existence of Stable Roommate Matchings," Games and Economic Behavior, Elsevier, vol. 33(2), pages 206-230, November.
- David M. Brasington, 2003. "Size and School District Consolidation: Do Opposites Attract?," Economica, London School of Economics and Political Science, vol. 70(280), pages 673-690, November.
- José Álvaro Rodrigues Neto, 2006.
"Representing Roomates' Preferences with Symmetric Utilities,"
Working Papers Series
105, Central Bank of Brazil, Research Department.
- Alvaro Rodrigues-Neto, Jose, 2007. "Representing roommates' preferences with symmetric utilities," Journal of Economic Theory, Elsevier, vol. 135(1), pages 545-550, July.
- Joris Pinkse & Margaret E. Slade & Craig Brett, 2002. "Spatial Price Competition: A Semiparametric Approach," Econometrica, Econometric Society, vol. 70(3), pages 1111-1153, May.
- Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
- David M. Brasington, 2003. "Snobbery, Racism, or Mutual Distaste: What Promotes and Hinders Cooperation in Local Public-Good Provision?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 874-883, November.
- Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1057-1090.
- Daniel McFadden, 1987.
"A Method of Simulated Moments for Estimation of Discrete Response Models Without Numerical Integration,"
464, Massachusetts Institute of Technology (MIT), Department of Economics.
- McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
- Nora Gordon & Brian Knight, 2008. "The Effects of School District Consolidation on Educational Cost and Quality," Public Finance Review, SAGE Publishing, vol. 36(4), pages 408-430, July.
- Brasington, David M., 1999. "Joint provision of public goods: the consolidation of school districts," Journal of Public Economics, Elsevier, vol. 73(3), pages 373-393, September.
- Alberto Alesina & Reza Baqir & Caroline Hoxby, 2000.
"Political Jurisdictions in Heterogeneous Communities,"
NBER Working Papers
7859, National Bureau of Economic Research, Inc.
- Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
- Alberto Alesina & Reza Baqir & Caroline Hoxby, 2002. "Political Jurisdictions in Heterogeneous Communities," Harvard Institute of Economic Research Working Papers 1949, Harvard - Institute of Economic Research.
- Hoxby, Caroline & Baqir, Reza & Alesina, Alberto, 2004. "Political Jurisdictions in Heterogeneous Communities," Scholarly Articles 4552532, Harvard University Department of Economics.
- Donald Boyd & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2003. "Analyzing the Determinants of the Matching Public School Teachers to Jobs: Estimating Compensating Differentials in Imperfect Labor Markets," NBER Working Papers 9878, National Bureau of Economic Research, Inc.
- Dranove, David & White, William D, 1994. "Recent Theory and Evidence on Competition in Hospital Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(1), pages 169-209, Spring.
- Morten Sørensen, 2007. "How Smart Is Smart Money? A Two-Sided Matching Model of Venture Capital," Journal of Finance, American Finance Association, vol. 62(6), pages 2725-2762, December.
- Filer, John E & Kenny, Lawrence W, 1980. "Voter Reaction to City-County Consolidation Referenda," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 179-90, April.
- Kelejian, Harry H. & Prucha, Ingmar R., 2007. "HAC estimation in a spatial framework," Journal of Econometrics, Elsevier, vol. 140(1), pages 131-154, September.
- Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:93:y:2009:i:5-6:p:752-765. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.