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Institutional Effects in a Simple Model of Educational Production

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  • Bishop, John H.

    (Cornell University)

  • Ludger Woessmann

    (Kiel Institute of World Economics)

Abstract

The paper presents a model of educational production which tries to make sense of recent evidence on effects of institutional arrangements on student performance. In a simple principal-agent framework, students choose their learning effort to maximize their net benefits, while the government chooses educational spending to maximize its net benefits. In the jointly determined equilibrium, schooling quality is shown to depend on several institutionally determined parameters. The impact on student performance of institutions such as central examinations, centralization versus school autonomy, teachers' influence, parental influence, and competition from private schools is analyzed. Furthermore, the model can rationalize why positive resource effects may be lacking in educational production.

Suggested Citation

  • Bishop, John H. & Ludger Woessmann, 2002. "Institutional Effects in a Simple Model of Educational Production," Royal Economic Society Annual Conference 2002 29, Royal Economic Society.
  • Handle: RePEc:ecj:ac2002:29
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    References listed on IDEAS

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    1. repec:hrv:faseco:33077889 is not listed on IDEAS
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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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