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The Determinants of Public Education Expenditures: Evidence from the States, 1950-1990

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  • Fernandez, Raquel
  • Rogerson, Richard

Abstract

We examine a panel data set for the US states over the period 1950-1990 and use it to assess the effects of growth in personal income and number of students on expenditure on public primary and secondary education. Our analysis suggests that the share of personal income devoted to education is roughly constant, implying that per student education expenditures grow at roughly the same rate as personal income per student. We also find evidence that additional factors accounted for an increase in education expenditures over the period 1950-1970.
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Suggested Citation

  • Fernandez, Raquel & Rogerson, Richard, 1997. "The Determinants of Public Education Expenditures: Evidence from the States, 1950-1990," Working Papers 97-16, C.V. Starr Center for Applied Economics, New York University.
  • Handle: RePEc:cvs:starer:97-16
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Fernandez, Raquel & Rogerson, Richard, 1998. "Public Education and Income Distribution: A Dynamic Quantitative Evaluation of Education-Finance Reform," American Economic Review, American Economic Association, vol. 88(4), pages 813-833, September.
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    Citations

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    Cited by:

    1. Lars-Erik Borge & Jørn Rattsø, 2007. "Young and old competing for public welfare services," Working Paper Series 8607, Department of Economics, Norwegian University of Science and Technology.
    2. David Fielding & Sebastian Torres, 2009. "Health, Wealth, Fertility, Education, and Inequality," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 39-55, February.
    3. Oberndorfer, Ulrich & Steiner, Viktor, 2006. "Intergenerational Conflict, Partisan Politics, and Public Higher Education Spending: Evidence from the German States," IZA Discussion Papers 2417, Institute for the Study of Labor (IZA).
    4. La Ferrara, Eliana & Mele, Angelo, 2006. "Racial Segregation and Public School Expenditure," CEPR Discussion Papers 5750, C.E.P.R. Discussion Papers.
    5. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
    6. Britta Baum & Helmut Seitz, 2003. "Demographischer Wandel und Bildungsausgaben: empirische Evidenz für die westdeutschen Länder," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 205-219.
    7. Ulrich Oberndorfer & Viktor Steiner, 2006. "Generationen- oder Parteienkonflikt?: Eine empirische Analyse der deutschen Hochschulausgaben," Discussion Papers of DIW Berlin 603, DIW Berlin, German Institute for Economic Research.
    8. repec:eee:hapoch:v1_381 is not listed on IDEAS
    9. Sean Corcoran & William N. Evans, 2010. "Income Inequality, the Median Voter, and the Support for Public Education," NBER Working Papers 16097, National Bureau of Economic Research, Inc.
    10. Arze del Granado, F. Javier & Martinez-Vazquez, Jorge & McNab, Robert M., 2012. "Decentralized Governance and Preferences for Public Goods," MPRA Paper 42459, University Library of Munich, Germany.
    11. Julian Ramajo & Javier Salinas & Francisco Pedraja & Miguel Márquez, 2007. "Competition in the allocation of public spending: a new model to analyse the interaction between expenditure categories," Economics Bulletin, AccessEcon, vol. 8(4), pages 1-7.

    More about this item

    Keywords

    Education expenditures; education finance;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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