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Expense Preference and Student Achievement in School Districts

  • Thomas S. Dee

    ()

    (Department of Economics, Swarthmore College)

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.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume31/V31N1P23_44.pdf
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 31 (2005)
Issue (Month): 1 (Winter)
Pages: 23-44

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Handle: RePEc:eej:eeconj:v:31:y:2005:i:1:p:23-44
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  1. Alan B. Krueger, 1999. "Experimental Estimates Of Education Production Functions," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 497-532, May.
  2. K. Newey, Whitney, 1985. "Generalized method of moments specification testing," Journal of Econometrics, Elsevier, vol. 29(3), pages 229-256, September.
  3. 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 611-27, November.
  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. 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 147-62, February.
  6. 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 1141-77, September.
  7. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
  8. 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.
  9. Evans, William N & Schwab, Robert M, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 941-74, November.
  10. 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 1333-81, September.
  11. Sander, William, 1993. "Expenditures and student achievement in Illinois : New evidence," Journal of Public Economics, Elsevier, vol. 52(3), pages 403-416, October.
  12. 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.
  13. 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.
  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. 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.
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