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An Empirical Framework for Large-Scale Policy Analysis, with an Application to School Finance Reform in Michigan

  • Maria Marta Ferreyra

    (Carnegie Mellon University)

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    In this paper I develop an empirical framework for the analysis of large-scale policies, and apply it to study the effects of Michigan’s 1994 school finance reform on the Detroit metropolitan area. The framework includes estimating a general equilibrium model of multiple jurisdictions with data before the reform, predicting the post-reform equilibrium, and comparing this prediction with post-reform data to validate the model. According to my analysis, the Michigan reform had little impact on household demographics or school quality in Detroit. The alternative school funding policies analyzed here do not seem to affect school quality much either.

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    File URL: https://www.economicdynamics.org/meetpapers/2008/paper_609.pdf
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    Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 609.

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    Date of creation: 2008
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    Handle: RePEc:red:sed008:609
    Contact details of provider: Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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    Web page: http://www.EconomicDynamics.org/society.htm
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    1. Holger Sieg & V. Kerry Smith & H. Spencer Banzhaf & Randy Walsh, 2004. "Estimating The General Equilibrium Benefits Of Large Changes In Spatially Delineated Public Goods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1047-1077, November.
    2. Aaronson, Daniel, 1999. "The Effect of School Finance Reform on Population Heterogeneity," National Tax Journal, National Tax Association, vol. 52(n. 1), pages 5-29, March.
    3. Jeremy Lise & Shannon Seitz & Jeffrey Smith, 2005. "Equilibrium Policy Experiments and the Evaluation of Social Programs," Working Papers 1076, Queen's University, Department of Economics.
    4. Joydeep Roy, 2011. "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan," Education Finance and Policy, MIT Press, vol. 6(2), pages 137-167, April.
    5. Papke, Leslie E., 2005. "The effects of spending on test pass rates: evidence from Michigan," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 821-839, June.
    6. Joydeep Roy, 2004. "Effect of a School Finance Reform on Housing Stock and Residential Segregation: Evidence from Proposal A in Michigan," Public Economics 0412004, EconWPA.
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