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Public sector performance measurement and stakeholder support

  • Figlio, David N.
  • Kenny, Lawrence W.

Over the past several decades there has been dramatically increased attention paid to measuring the performance of public sector and nonprofit organizations in the United States and elsewhere. Recent research has indicated that public sector and nonprofit organizations are responsive to performance measurement in both productive and unproductive ways. However, it is not yet known how stakeholders respond to this measurement. This paper makes use of a unique panel survey dataset of the population of elementary and middle schools in the state of Florida to directly investigate this question. We exploit the fact that Florida changed its school grading system in 2002 and study the degree to which private contributions to schools are responsive to the information contained in school grades. We find evidence that school grades can have substantial effects on a school's ability to obtain private contributions. We also observe that schools serving different clienteles are treated differently in response to changes in school grades.

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File URL: http://www.sciencedirect.com/science/article/B6V76-4WSRDX9-2/2/a4f7bf195d8f835f0e587507515d77c4
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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 9-10 (October)
Pages: 1069-1077

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:9-10:p:1069-1077
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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  1. Craig Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2005. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," NBER Working Papers 11611, National Bureau of Economic Research, Inc.
  2. Justine S. Hastings & Jeffrey M. Weinstein, 2007. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," NBER Working Papers 13623, National Bureau of Economic Research, Inc.
  3. David N. Figlio & Lawrence Kenny, 2006. "Individual Teacher Incentives And Student Performance," NBER Working Papers 12627, National Bureau of Economic Research, Inc.
  4. Ginger Zhe Jin & Alex Whalley, 2007. "The Power of Attention: Do Rankings Affect the Financial Resources of Public Colleges?," NBER Working Papers 12941, National Bureau of Economic Research, Inc.
  5. S. Dellavigna., 2011. "Psychology and Economics: Evidence from the Field," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
  6. David N. Figlio, 2005. "Testing, Crime and Punishment," NBER Working Papers 11194, National Bureau of Economic Research, Inc.
  7. Cecilia Elena Rouse & Jane Hannaway & Dan Goldhaber & David Figlio, 2013. "Feeling the Florida Heat? How Low-Performing Schools Respond to Voucher and Accountability Pressure," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 251-81, May.
  8. Leemore Dafny & David Dranove, 2005. "Do Report Cards Tell Consumers Anything They Don't Already Know? The Case of Medicare HMOs," NBER Working Papers 11420, National Bureau of Economic Research, Inc.
  9. 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.
  10. Xavier Gabaix & David Laibson & Guillermo Moloche & Stephen Weinberg, 2006. "Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model," American Economic Review, American Economic Association, vol. 96(4), pages 1043-1068, September.
  11. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
  12. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect Of Information On Product Quality: Evidence From Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 409-451, May.
  13. Brunner, Eric & Sonstelie, Jon, 2003. "School finance reform and voluntary fiscal federalism," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2157-2185, September.
  14. Vidhi Chhaochharia & Suman Ghosh, 2008. "Do Charity Ratings Matter?," Working Papers 08001, Department of Economics, College of Business, Florida Atlantic University.
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