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Introducing School Choice into Multidistrict Public School Systems

In: The Economics of School Choice

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  • Thomas J. Nechyba

Abstract

Predicting the impact of school finance and school choice policies is complicated in large part because of the multitude of household choices that are simultaneously influenced within a general equilibrium setting. Parents choose which neighborhoods in which school districts to reside in, which schools - public or private - to send their children to, and how to participate in political process that affects education policies. As a result of these choices, property values and therefore budget sets change as different policies are introduced, and the nature of schools changes as inputs - including different mixes of children and parents - change. Furthermore, school administrators in both private and public schools may change their behavior under different institutional arrangements. The purpose of this paper is therefore to shed light on how school choice policies change opportunities faced by different types of households and their children as the general equilibrium forces unfold. The analysis employs general equilibrium simulations to accomplish this. These simulations are derived from a three-district model of low, middle and high-income school districts (calibrated to New York data) with housing stocks that vary within and across districts. The advantage of this approach is that, rather than starting from an abstract and idealized public school system, it allows the analysis to proceed from a base model that replicates the actual stylized facts that emerge from the data - including public school systems with wide inter-district variations of school quality, communities with housing stocks similar to those observed in the data, etc. Furthermore, the data are used to infer specific parameters in behavioral equations, parameters that are consistent with the present state of the world. Policies then unfold in the model under the assumptions that household responses will be consistent with these parameters. Previous analysis conducted with this model has yielded a va
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Suggested Citation

  • Thomas J. Nechyba, 2003. "Introducing School Choice into Multidistrict Public School Systems," NBER Chapters,in: The Economics of School Choice, pages 145-194 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:10088
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    References listed on IDEAS

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    Cited by:

    1. Chakrabarti Rajashri, 2013. "Impact of Voucher Design on Public School Performance: Evidence from Florida and Milwaukee Voucher Programs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(1), pages 349-394, July.
    2. Emmanuel Vazquez, 2016. "Segregación escolar por nivel socioeconómico. Midiendo el fenómeno y explorando sus determinantes," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 62, pages 121-184, January-D.
    3. Joseph G. Altonji & Ching-I Huang & Christopher R. Taber, 2015. "Estimating the Cream Skimming Effect of School Choice," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 266-324.
    4. Brunner, Eric J. & Imazeki, Jennifer, 2008. "Tiebout choice and universal school vouchers," Journal of Urban Economics, Elsevier, vol. 63(1), pages 253-279, January.
    5. Brunner, Eric J. & Cho, Sung-Woo & Reback, Randall, 2012. "Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs," Journal of Public Economics, Elsevier, vol. 96(7), pages 604-614.
    6. Chakrabarti, Rajashri, 2008. "Can increasing private school participation and monetary loss in a voucher program affect public school performance? Evidence from Milwaukee," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1371-1393, June.
    7. Francisco Martínez Mora, 2004. "Opting-out and income mixing in urban economies:the role of neighborhood effects," Economic Working Papers at Centro de Estudios Andaluces E2004/67, Centro de Estudios Andaluces.
    8. Margaret Brehm & Scott A. Imberman & Michael Naretta, 2017. "Capitalization of Charter Schools into Residential Property Values," Education Finance and Policy, MIT Press, vol. 12(1), pages 1-27, Winter.
    9. Burgess, Simon & Briggs, Adam, 2010. "School assignment, school choice and social mobility," Economics of Education Review, Elsevier, vol. 29(4), pages 639-649, August.
    10. Rajashri Chakrabarti, 2013. "Vouchers, Public School Response, And The Role Of Incentives: Evidence From Florida," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 500-526, January.
    11. Winters, Marcus A., 2012. "Measuring the effect of charter schools on public school student achievement in an urban environment: Evidence from New York City," Economics of Education Review, Elsevier, vol. 31(2), pages 293-301.
    12. Eric J. Brunner & Jennifer Imazeki, 2006. "Tiebout Choice and the Voucher," Working papers 2006-10, University of Connecticut, Department of Economics.
    13. Robert Bifulco & Randall Reback, 2014. "Fiscal Impacts of Charter Schools: Lessons from New York," Education Finance and Policy, MIT Press, vol. 9(1), pages 86-107, January.
    14. Lorraine Dearden & Chris Ryan & Luke Sibieta, 2010. "What determines private school choice? a comparison between the UK and Australia," IFS Working Papers W10/22, Institute for Fiscal Studies.
    15. Eric Brunner & Jennifer Imazeki & Stephen L. Ross, 2006. "Universal Vouchers and Racial Segregation," Working papers 2006-01, University of Connecticut, Department of Economics, revised Aug 2008.
    16. Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
    17. Lamarche, Carlos, 2011. "Measuring the incentives to learn in Colombia using new quantile regression approaches," Journal of Development Economics, Elsevier, vol. 96(2), pages 278-288, November.
    18. David E. Campbell & Martin R. West & Paul E. Peterson, 2005. "Participation in a national, means-tested school voucher program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(3), pages 523-541.
    19. Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
    20. Binner, Amy & Day, Brett, 2015. "Exploring mortgage interest deduction reforms: An equilibrium sorting model with endogenous tenure choice," Journal of Public Economics, Elsevier, vol. 122(C), pages 40-54.
    21. Thomas J. Kane & Douglas O. Staiger & Stephanie K. Riegg, 2005. "School Quality, Neighborhoods and Housing Prices: The Impacts of school Desegregation," NBER Working Papers 11347, National Bureau of Economic Research, Inc.
    22. Francisco Martínez Mora, 2003. "Opting-out of Public Education in Urban Economies," Economic Working Papers at Centro de Estudios Andaluces E2003/52, Centro de Estudios Andaluces.

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