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Property Taxation as a Determinant of School District Efficiency

Author

Listed:
  • Marte Rønning

    (Centre for Economic Research and Department of Economics, Norwegian University of Science and Technology)

  • Jon Hernes Fiva

    (Centre for Economic Research and Department of Economics, Norwegian University of Science and Technology)

Abstract

Recent theoretical contributions have emphasized the favorable incentive effects of property taxation. The object of this paper is to confront these theories with Norwegian data on student performance. The institutional setting in Norway is well suited to analyzing the effects of property taxation because we can compare school districts with and without property taxation. In addition, we focus on an alternative incentive mechanism - competition between school districts. The empirical results indicate that students in school districts that levy residential property taxes perform better at the national examination than students in comparable school districts. Strategic interaction in school quality is present, but the magnitude of the interaction effect is modest.

Suggested Citation

  • Marte Rønning & Jon Hernes Fiva, 2004. "Property Taxation as a Determinant of School District Efficiency," Working Paper Series 5105, Department of Economics, Norwegian University of Science and Technology, revised 14 Jul 2005.
    • Handle: RePEc:nst:samfok:5105
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    File URL: http://www.svt.ntnu.no/iso/WP/2005/4fivaronning_2005.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jørn Rattsø & Jon Hernes Fiva, 2005. "Decentralization with Property Taxation to Improve Incentives: Evidence from Local Governments’ Discrete Choice," Working Paper Series 5305, Department of Economics, Norwegian University of Science and Technology, revised 02 Sep 2005.

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    More about this item

    Keywords

    Student achievement; efficiency; property taxation; competition; spatial auto-regressive model;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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