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The role of poverty measurements in achieving educational equity through school finance reform

Author

Listed:
  • Lori Taylor

    (Texas A&M University)

  • Shawna Grosskopf

    (Oregon State University)

  • Kathy Hayes

    (Southern Methodist University)

  • Laura Razzolini

    (The University of Alabama)

Abstract

In this paper, we estimate a series of stochastic frontier cost functions for elementary schools, using a short panel of Texas data that allows us to account for student characteristics, input prices, environmental factors and student outcomes. Texas currently uses information about the share of students participating into the Free and Reduced Price Lunch (FRL) program to determine compensatory funding to provide to schools. The FRL measure has been criticized as a relatively poor measure of need. We consider a new, recently developed, measure of poverty, the Spatially Interpolated Demographic and Economic (SIDE) measure, as a possible complement or alternative to the FRL measure. SIDE uses the income of the neighborhood in which the school resides as the basis to assess need and poverty. We find that using both poverty metrics highlights the additional costs associated with serving high poverty populations in high poverty locations, i.e., neighborhood locations matter.

Suggested Citation

  • Lori Taylor & Shawna Grosskopf & Kathy Hayes & Laura Razzolini, 2023. "The role of poverty measurements in achieving educational equity through school finance reform," Journal of Productivity Analysis, Springer, vol. 60(2), pages 109-127, October.
    • Handle: RePEc:kap:jproda:v:60:y:2023:i:2:d:10.1007_s11123-022-00657-w
    DOI: 10.1007/s11123-022-00657-w
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    References listed on IDEAS

    as
    1. Duncombe, William & Yinger, John, 2005. "How much more does a disadvantaged student cost?," Economics of Education Review, Elsevier, vol. 24(5), pages 513-532, October.
    2. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
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