IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp16943.html

Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education

Author

Listed:
  • Goldring, Thomas

    (Georgia State University)

  • Jacob, Brian A.

    (University of Michigan)

  • Kreisman, Daniel

    (Georgia State University)

  • Ricks, Michael D.

    (University of Nebraska-Lincoln)

Abstract

In 2015, Michigan increased it Career and Technical Education (CTE) funding and changed its funding formula to reimburse programsbased student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.

Suggested Citation

  • Goldring, Thomas & Jacob, Brian A. & Kreisman, Daniel & Ricks, Michael D., 2024. "Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education," IZA Discussion Papers 16943, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16943
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp16943.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rubolino, Enrico, 2023. "Does weak enforcement deter tax progressivity?," Journal of Public Economics, Elsevier, vol. 219(C).
    2. Joshua Hyman, 2017. "Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 256-280, November.
    3. Sacarny, Adam, 2018. "Adoption and learning across hospitals: The case of a revenue-generating practice," Journal of Health Economics, Elsevier, vol. 60(C), pages 142-164.
    4. Mark McClellan, 2011. "Reforming Payments to Healthcare Providers: The Key to Slowing Healthcare Cost Growth While Improving Quality?," Journal of Economic Perspectives, American Economic Association, vol. 25(2), pages 69-92, Spring.
    5. Michael Dinerstein & Isaac M. Opper, 2022. "Screening with Multitasking," CESifo Working Paper Series 9869, CESifo.
    6. Geys, Benny & Heggedal, Tom-Reiel & Sørensen, Rune J., 2017. "Are bureaucrats paid like CEOs? Performance compensation and turnover of top civil servants," Journal of Public Economics, Elsevier, vol. 152(C), pages 47-54.
    7. Leemore Dafny & David Dranove, 2009. "Regulatory Exploitation and Management Changes: Upcoding in the Hospital Industry," Journal of Law and Economics, University of Chicago Press, vol. 52(2), pages 223-250, May.
    8. Jacob A. Mortenson & Andrew Whitten, 2020. "Bunching to Maximize Tax Credits: Evidence from Kinks in the US Tax Schedule," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 402-432, August.
    9. C. Kirabo Jackson & Claire L. Mackevicius, 2024. "What Impacts Can We Expect from School Spending Policy? Evidence from Evaluations in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 16(1), pages 412-446, January.
    10. Don Fullerton & Erich Muehlegger, 2019. "Who Bears the Economic Burdens of Environmental Regulations?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 62-82.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Candelaria, Christopher A. & Fazlul, Ishtiaque & Koedel, Cory & Shores, Kenneth A., 2024. "Weighting for progressivity? An analysis of implicit tradeoffs associated with weighted student funding in Tennessee," Economics of Education Review, Elsevier, vol. 103(C).
    2. Chauvin, Juan Pablo, 2024. "Local Education Spending and Migration: Evidence from a Large Redistribution Program," IDB Publications (Working Papers) 13497, Inter-American Development Bank.
    3. Danielle V. Handel & Eric A. Hanushek, 2024. "Contexts of Convenience: Generalizing from Published Evaluations of School Finance Policies," Evaluation Review, , vol. 48(3), pages 461-494, June.
    4. Caterina Pavese & Enrico Rubolino, 2024. "Austerity Harmed Student Achievement," The Economic Journal, Royal Economic Society, vol. 134(659), pages 1199-1227.
    5. Bowblis John R. & Brunt Christopher S. & Grabowski David C., 2016. "Competitive Spillovers and Regulatory Exploitation by Skilled Nursing Facilities," Forum for Health Economics & Policy, De Gruyter, vol. 19(1), pages 45-70, June.
    6. Ali Hortaçsu & Olivia R. Natan & Hayden Parsley & Timothy Schwieg & Kevin R. Williams, 2021. "Organizational Structure and Pricing: Evidence from a Large U.S. Airline," NBER Working Papers 29508, National Bureau of Economic Research, Inc.
    7. Mar√≠a Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    8. Adolf Kwadzo Dzampe & Shingo Takahashi, 2024. "Financial incentives and health provider behaviour: Evidence from a capitation policy in Ghana," Health Economics, John Wiley & Sons, Ltd., vol. 33(2), pages 333-344, February.
    9. Hanming Fang & Qing Gong, 2017. "Detecting Potential Overbilling in Medicare Reimbursement via Hours Worked," American Economic Review, American Economic Association, vol. 107(2), pages 562-591, February.
    10. Waldenstrom, Daniel & Bastani, Spencer, 2020. "The Ability Gradient in Bunching," CEPR Discussion Papers 14599, C.E.P.R. Discussion Papers.
    11. Kollerup, Anna & Wadmann, Sarah & Bek, Toke & Kjellberg, Jakob, 2022. "National clinical guidelines and treatment centralization do not guarantee consistency in healthcare delivery. A mixed-methods study of wet age-related macular degeneration treatment in Denmark," Health Policy, Elsevier, vol. 126(12), pages 1291-1302.
    12. Monica Claudia Grigoroiu & Cristina Țurcanu & Cristinel Petrișor Constantin & Alina Simona Tecău & Ileana Tache, 2025. "Determinant Factors of the Subjective Perception of Educational Projects with European Funding," Sustainability, MDPI, vol. 17(19), pages 1-34, September.
    13. Kate Ho & Ariel Pakes, 2014. "Hospital Choices, Hospital Prices, and Financial Incentives to Physicians," American Economic Review, American Economic Association, vol. 104(12), pages 3841-3884, December.
    14. Eric Brunner & Joshua Hyman & Andrew Ju, 2020. "School Finance Reforms, Teachers' Unions, and the Allocation of School Resources," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 473-489, July.
    15. Andersson, Tommy & Ellegård, Lina Maria & Enache, Andreea & Erlanson, Albin & Thami, Prakriti, 2024. "Multiple pricing for personal assistance services," Economic Modelling, Elsevier, vol. 141(C).
    16. Garrett Anstreicher & Jason Fletcher & Owen Thompson, 2022. "The Long Run Impacts of Court-Ordered Desegregation," NBER Working Papers 29926, National Bureau of Economic Research, Inc.
    17. Marcelo Bergolo & Gabriel Burdin & Mauricio De Rosa & Matias Giaccobasso & Martín Leites, 2019. "Tax bunching at the Kink in the Presence of Low Capacity of Enforcement: Evidence From Uruguay," Documentos de Trabajo (working papers) 19-05, Instituto de Economía - IECON.
    18. Han, Xianru, 2023. "The Distributional Effects of Tighter Regulations: New Evidence from the Sugarcane Burning in Florida," 2023 Annual Meeting, July 23-25, Washington D.C. 335926, Agricultural and Applied Economics Association.
    19. Bruno Martins & Luís Filipe, 2020. "Doctors' response to queues: Evidence from a Portuguese emergency department," Health Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 123-137, February.
    20. Rudy Douven & Minke Remmerswaal & Robin Zoutenbier, 2015. "Do Extrinsically Motivated Mental Health Care Providers Have Better Treatment Outcomes?," CPB Discussion Paper 319.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp16943. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.