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Expense Preference and Student Achievement in School Districts

Author

Listed:
  • Thomas S. Dee

    () (Department of Economics, Swarthmore College)

Abstract

There is little direct evidence on the widely held view that school districts spend too few of available resources on student instruction. I find evidence of such an expense preference by assessing the effect of competition from private schools on the allocation of resources by school districts. I also examine the effects of instructional and non-instructional spending on high school completion rates. The results suggest that school districts direct too few of available resources towards instruction. The results also demonstrate, however, that money spent on instruction is highly effective when conditioned on the decision to spend outside the classroom.

Suggested Citation

  • Thomas S. Dee, 2005. "Expense Preference and Student Achievement in School Districts," Eastern Economic Journal, Eastern Economic Association, vol. 31(1), pages 23-44, Winter.
  • Handle: RePEc:eej:eeconj:v:31:y:2005:i:1:p:23-44
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume31/V31N1P23_44.pdf
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    References listed on IDEAS

    as
    1. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    2. Hanushek, Eric A & Rivkin, Steven G & Taylor, Lori L, 1996. "Aggregation and the Estimated Effects of School Resources," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 611-627, November.
    3. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
    4. Hanushek, Eric A. & Rivkin, Steven G. & Jamison, Dean T., 1992. "Improving educational outcomes while controlling costs," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 205-238, December.
    5. Cameron, Stephen V & Heckman, James J, 1993. "The Nonequivalence of High School Equivalents," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 1-47, January.
    6. K. Newey, Whitney, 1985. "Generalized method of moments specification testing," Journal of Econometrics, Elsevier, vol. 29(3), pages 229-256, September.
    7. William N. Evans & Robert M. Schwab, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 941-974.
    8. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    9. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
    10. Lankford, Hamilton & Wyckoff, James, 1992. "Primary and secondary school choice among public and religious alternatives," Economics of Education Review, Elsevier, vol. 11(4), pages 317-337, December.
    11. Edwards, Franklin R, 1977. "Managerial Objectives in Regulated Industries: Expense-Preference Behavior in Banking," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 147-162, February.
    12. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    13. Sander, William, 1993. "Expenditures and student achievement in Illinois : New evidence," Journal of Public Economics, Elsevier, vol. 52(3), pages 403-416, October.
    14. Murray, Sheila E & Evans, William N & Schwab, Robert M, 1998. "Education-Finance Reform and the Distribution of Education Resources," American Economic Review, American Economic Association, vol. 88(4), pages 789-812, September.
    15. Anderson, Gary M. & Shughart, William II & Tollison, Robert D., 1991. "Educational achievement and the cost of bureaucracy," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 29-45, January.
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    Citations

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    Cited by:

    1. Christopher C. Klein, 2007. "Causality Tests for Public School Performance and Funding," Working Papers 200715, Middle Tennessee State University, Department of Economics and Finance.
    2. Kelly Bedard & William O. Brown, Jr., "undated". "The Allocation of Public School Expenditures," Claremont Colleges Working Papers 2000-16, Claremont Colleges.
    3. Mensah, Yaw M. & Schoderbek, Michael P. & Sahay, Savita P., 2013. "The effect of administrative pay and local property taxes on student achievement scores: Evidence from New Jersey public schools," Economics of Education Review, Elsevier, vol. 34(C), pages 1-16.

    More about this item

    Keywords

    Education;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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