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Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools

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  • Thomas A. Downes
  • Shane M. Greenstein

Abstract

This research examines the location choice of California private schools in 1978-1979. We make use of some of the recent developments in the analysis of count data. The results indicate that the character of the population and the public schools influence location decisions. Private schools with different religious affiliations respond differently to population characteristics, which we argue is evidence of differences in the objectives of these different types of private schools. Location decisions of all types of private schools depend most on characteristics of the community in which a school locates, with attributes of surrounding communities having small effects on the location decision.

Suggested Citation

  • Thomas A. Downes & Shane M. Greenstein, 1996. "Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 365-390, Summer.
  • Handle: RePEc:rje:randje:v:27:y:1996:i:summer:p:365-390
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    References listed on IDEAS

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    Cited by:

    1. Figlio, David N. & Stone, Joe A., 2001. "Can Public Policy Affect Private School Cream Skimming?," Journal of Urban Economics, Elsevier, vol. 49(2), pages 240-266, March.
    2. Bastos, Paulo & Cristia, Julian, 2012. "Supply and quality choices in private child care markets: Evidence from São Paulo," Journal of Development Economics, Elsevier, vol. 98(2), pages 242-255.
    3. Downes, Tom & Greenstein, Shane, 2007. "Understanding why universal service obligations may be unnecessary: The private development of local Internet access markets," Journal of Urban Economics, Elsevier, vol. 62(1), pages 2-26, July.
    4. Betts, Julian R. & Fairlie, Robert W., 2003. "Does immigration induce 'native flight' from public schools into private schools?," Journal of Public Economics, Elsevier, pages 987-1012.
    5. Buddin, Richard J. & Cordes, Joseph J. & Kirby, Sheila Nataraj, 1998. "School Choice in California: Who Chooses Private Schools?," Journal of Urban Economics, Elsevier, vol. 44(1), pages 110-134, July.
    6. Brunner, Eric J. & Imazeki, Jennifer, 2008. "Tiebout choice and universal school vouchers," Journal of Urban Economics, Elsevier, vol. 63(1), pages 253-279, January.
    7. repec:bla:ausecr:v:49:y:2016:i:4:p:432-452 is not listed on IDEAS
    8. Barrow, Lisa, 2006. "Private school location and neighborhood characteristics," Economics of Education Review, Elsevier, vol. 25(6), pages 633-645, December.
    9. Mario Cuevas & Sigfrido Lee & Bismarck Pineda, 2010. "Industrial Policy in Guatemala: A Case of Policy Inertia under Changing Paradigms," Research Department Publications 4694, Inter-American Development Bank, Research Department.
    10. Danny Cohen-Zada & William Sander, 2006. "Private School Choice: The Effects Of Religion And Religiosity," Working Papers 0601, Ben-Gurion University of the Negev, Department of Economics.
    11. D. N. Figlio & J. A. Stone, "undated". "School Choice and Student Performance: Are Private Schools Really Better?," Institute for Research on Poverty Discussion Papers 1141-97, University of Wisconsin Institute for Research on Poverty.
    12. Paulo Bastos & Julian P. Cristia, 2010. "Entry and Quality Choices in Child Care Markets," IDB Publications (Working Papers) 3029, Inter-American Development Bank.
    13. Gregory Elacqua & Matías Martínez, 2011. "Searching for schools in a low quality market: Evidence from Chile," Working Papers 16, Facultad de Economía y Empresa, Universidad Diego Portales.
    14. Susan Dynarski & Jonathan Gruber & Danielle Li, 2009. "Cheaper By the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance," NBER Working Papers 15461, National Bureau of Economic Research, Inc.
    15. Chakrabarti, Rajashri & Roy, Joydeep, 2016. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Journal of Urban Economics, Elsevier, vol. 91(C), pages 88-103.
    16. Andrabi, Tahir & Das, Jishnu & Khwaja, Asim Ijaz, 2013. "Students today, teachers tomorrow: Identifying constraints on the provision of education," Journal of Public Economics, Elsevier, pages 1-14.
    17. Manuszak, Mark D., 2002. "Endogenous market structure and competition in the 19th century American brewing industry," International Journal of Industrial Organization, Elsevier, vol. 20(5), pages 673-692, May.
    18. Goldhaber, Dan, 1999. "An Endogenous Model of Public School Expenditures and Private School Enrollment," Journal of Urban Economics, Elsevier, vol. 46(1), pages 106-128, July.
    19. Filer, Randall K. & Münich, Daniel, 2013. "Responses of private and public schools to voucher funding," Economics of Education Review, Elsevier, vol. 34(C), pages 269-285.
    20. Nechyba, Thomas J., 2003. "What Can Be (And What Has Been) Learned From General Equilibrium Simulation Models of School Finance?," National Tax Journal, National Tax Association, vol. 56(2), pages 387-414, June.
    21. M. Niaz Asadullah, 2016. "Do Pro-Poor Schools Reach Out to the Poor? Location Choice of BRAC and ROSC Schools in Bangladesh," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 49(4), pages 432-452, December.
    22. Thomas A. Downes & Jeffrey E. Zabel, 1997. "The Impact of School Quality on House Prices: Chicago 1987-1991," Discussion Papers Series, Department of Economics, Tufts University 9704, Department of Economics, Tufts University.
    23. Stephanie Riegg Cellini, 2009. "Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 1-30, August.

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