IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Pennies from heaven - Using exogenous tax variation to identify effects of school resources on pupil achievement

  • Hægeland, Torbjørn

    (Statistics Norway)

  • Raaum, Oddbjørn

    (Ragnar Frisch Centre for Economic Research)

  • Salvanes, Kjell Gunnar

    (The Norwegian School of Economics and Business Administration)

Despite important policy implications associated with the allocation of education resources, evidence on the effectiveness of school inputs remains inconclusive. In part, this is due to endogenous allocation; families sort themselves non-randomly into school districts and school districts allocate money based in order to compensate (or reinforce) differences in child abilities, which leaves estimates of school input effects likely to be biased. Using variation in education expenditures induced by the location of natural resources in Norway, we examine the effect of school resources on pupil outcomes. We find that higher school expenditures, triggered by higher revenues from local taxes on hydropower plants, have a significantly positive effect on pupil performance at age 16. The IV estimates contrast with the standard cross-sectional estimates that reveal no effects of extra resources.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2007/Memo-18-2007.pdf
Download Restriction: no

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 18/2007.

as
in new window

Length: 43 pages
Date of creation: 01 Sep 2007
Handle: RePEc:hhs:osloec:2007_018
Contact details of provider: Postal:
Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Alan B. Krueger, 2003. "Economic Considerations and Class Size," Economic Journal, Royal Economic Society, vol. 113(485), pages F34-F63, February.
  2. Hakkinen, Iida & Kirjavainen, Tanja & Uusitalo, Roope, 2003. "School resources and student achievement revisited: new evidence from panel data," Economics of Education Review, Elsevier, vol. 22(3), pages 329-335, June.
  3. Joydeep Roy, 2004. "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan," Econometric Society 2004 North American Summer Meetings 425, Econometric Society.
  4. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
  5. Paul W. Rhode & Koleman S. Strumpf, 2003. "Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990," American Economic Review, American Economic Association, vol. 93(5), pages 1648-1677, December.
  6. Borge, Lars-Erik & Rattso, J.Jorn, 2004. "Income distribution and tax structure: Empirical test of the Meltzer-Richard hypothesis," European Economic Review, Elsevier, vol. 48(4), pages 805-826, August.
  7. Holmlund, Helena & McNally, Sandra & Viarengo, Martina, 2008. "Does Money Matter for Schools?," IZA Discussion Papers 3769, Institute for the Study of Labor (IZA).
  8. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 533-575.
  9. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
  10. Wößmann, Ludger & West, Martin R., 2006. "Class-size effects in school systems around the world: Evidence from between-grade variation in TIMSS," Munich Reprints in Economics 19673, University of Munich, Department of Economics.
  11. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York.
  12. Martin Browning & Eskil Heinesen, 2007. "Class Size, Teacher Hours and Educational Attainment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 415-438, 06.
  13. Aaberge, Rolf & Langorgen, Audun, 2003. "Fiscal and Spending Behavior of Local Governments: Identification of Price Effects When Prices Are Not Observed," Public Choice, Springer, vol. 117(1-2), pages 125-161, October.
  14. Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja¨ntti & Tor Eriksson & Eva O¨sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages C72-C92, 03.
  15. Card, David & Payne, A. Abigail, 2002. "School finance reform, the distribution of school spending, and the distribution of student test scores," Journal of Public Economics, Elsevier, vol. 83(1), pages 49-82, January.
  16. Hans Bonesrønning, 2003. "Class Size Effects on Student Achievement in Norway: Patterns and Explanations," Southern Economic Journal, Southern Economic Association, vol. 69(4), pages 952-965, April.
  17. Alan Krueger & Diane Whitmore, 2000. "The Effect of Attending a Small Class in the Early Grades on College-Test Taking and Middle School Test Results: Evidence from Project STAR," NBER Working Papers 7656, National Bureau of Economic Research, Inc.
  18. Paul J. Devereux & Sandra E. Black & Kjell G. Salvanes, 2007. "From the cradle to the labor market? The effect of birth weight on adult outcomes," Open Access publications 10197/317, School of Economics, University College Dublin.
  19. Haegeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2005. "Pupil Achievement, School Resources and Family Background," IZA Discussion Papers 1459, Institute for the Study of Labor (IZA).
  20. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  21. Jonathan Guryan, 2001. "Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts," NBER Working Papers 8269, National Bureau of Economic Research, Inc.
  22. Jesse M. Rothstein, 2003. "Good Principals or Good Peers? Parental Valuation of School Characteristics, Tiebout Equilibrium, and the Incentive Effects of Competition among Jurisdictions," Working Papers 3, Princeton University, Woodrow Wilson School of Public and International Affairs, Education Research Section..
  23. Caroline M. Hoxby, 2000. "The Effects of Class Size on Student Achievement: New Evidence from Population Variation," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1239-1285.
  24. Eric A. Hanushek, 2002. "The Failure of Input-based Schooling Policies," NBER Working Papers 9040, National Bureau of Economic Research, Inc.
  25. Roy Roy, 2004. "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan," Working Papers 8, Princeton University, Woodrow Wilson School of Public and International Affairs, Education Research Section..
  26. Marte Rønning & Edvin Leuven & Hessel Oosterbeek, 2008. "Quasi-experimental estimates of the effect of class size on achievement in Norway," Working Paper Series 9308, Department of Economics, Norwegian University of Science and Technology.
  27. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
  28. Bingley, Paul & Jensen, Vibeke Myrup & Walker, Ian, 2005. "The Effects of School Class Size on Length of Post-Compulsory Education: Some Cost-Benefit Analysis," IZA Discussion Papers 1605, Institute for the Study of Labor (IZA).
  29. Cho, Hyunkuk & Glewwe, Paul & Whitler, Melissa, 2012. "Do reductions in class size raise students’ test scores? Evidence from population variation in Minnesota's elementary schools," Economics of Education Review, Elsevier, vol. 31(3), pages 77-95.
  30. Eric A. Hanushek & Steven G. Rivkin & Lori L. Taylor, 1996. "Aggregation and the Estimated Effects of School Resources," NBER Working Papers 5548, National Bureau of Economic Research, Inc.
  31. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
  32. Stephen Gibbons & Stephen Machin, 2006. "Paying for Primary Schools: Admission Constraints, School Popularity or Congestion?," Economic Journal, Royal Economic Society, vol. 116(510), pages C77-C92, 03.
  33. Gary-Bobo, Robert J. & Mahjoub, Mohamed Badrane, 2006. "Estimation of Class-Size Effects, Using 'Maimonides' Rule': The Case of French Junior High Schools," CEPR Discussion Papers 5754, C.E.P.R. Discussion Papers.
  34. Mikael Lindahl, 2005. "Home versus School Learning: A New Approach to Estimating the Effect of Class Size on Achievement," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 375-394, 06.
  35. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  36. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 777-803.
  37. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
  38. Douglas Almond & Kenneth Y. Chay & David S. Lee, 2005. "The Costs of Low Birth Weight," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 1031-1083.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hhs:osloec:2007_018. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Magnus Gabriel Aase)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.