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The Influence of the Elderly on School Spending in a Median Voter Framework

  • Deborah Fletcher

    ()

    (Department of Economics, Miami University)

  • Lawrence W. Kenny

    ()

    (Department of Economics, University of Florida)

How do the elderly influence school spending if they are a minority of the population? We estimate the determinants of school spending in a median voter model, comparing four assumptions about how the elderly influence the identity of the median voter. Using a county-level panel, we find that elderly preferences are best characterized by assuming all elderly or all elderly migrants vote with the poor. Having more elderly results in a median voter who is further down the community's income distribution. This median voter is poorer, which lowers preferred school spending, and faces a lower tax price, which raises preferred school spending. The evidence suggests that the income effect is slightly larger than the price effect, so the elderly on net cause a very small drop in spending. Thus the widespread concern about the negative impact of population aging on school funding seems to be misplaced. © 2008 American Education Finance Association

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/edfp.2008.3.3.283
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Article provided by MIT Press in its journal Education Finance and Policy.

Volume (Year): 3 (2008)
Issue (Month): 3 (July)
Pages: 283-315

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Handle: RePEc:tpr:edfpol:v:3:y:2008:i:3:p:283-315
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