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Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination

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  • Nirav Mehta

    (University of Western Ontario)

Abstract

The model successfully fits key endogenous outcomes as observed in the data: 1) charter schools enter larger markets and markets where they would have higher per-pupil resources, 2) charter schools and public schools in markets in which charter schools are present both choose higher input levels than public schools in markets where there are no charters, and 3) charter schools have the highest average test scores, followed by public schools in markets with charter school competition, followed by public schools in monopoly markets. I use the estimated model to simulate changes in the test score distribution for three counterfactual scenarios: 1) ban charter schools, 2) lift the currently binding statewide cap on the number of charter schools, and 3) equate charter and public school per-pupil resources. In the first and second counterfactuals, charter school entry increases test scores for students who would attend charters by one fifth of a standard deviation. Test scores for public school students in markets with charter schools increase marginally. Equating charter and public school capital triples the fraction of markets with charters and increases the test scores of students attending charters over the monopoly outcome by an even larger amount.

Suggested Citation

  • Nirav Mehta, 2012. "Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination," 2012 Meeting Papers 42, Society for Economic Dynamics.
  • Handle: RePEc:red:sed012:42
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    References listed on IDEAS

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    1. Ferreyra, Maria Marta & Kosenok, Grigory, 2018. "Charter school entry and school choice: The case of Washington, D.C," Journal of Public Economics, Elsevier, vol. 159(C), pages 160-182.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Caterina Calsamiglia & Chao Fu & Maia Güell, 2014. "Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives," Working Papers 2014-21, FEDEA.
    2. John D. Singleton, 2019. "Incentives and the Supply of Effective Charter Schools," American Economic Review, American Economic Association, vol. 109(7), pages 2568-2612, July.
    3. Matthew Ridley & Camille Terrier, 2018. "Fiscal and Education Spillovers from Charter School Expansion," NBER Working Papers 25070, National Bureau of Economic Research, Inc.
    4. Matthew Ridley & Camille Terrier, 2018. "Fiscal and education spillovers from charter school expansion," CEP Discussion Papers dp1577, Centre for Economic Performance, LSE.
    5. Ferreyra, Maria Marta & Kosenok, Grigory, 2018. "Charter school entry and school choice: The case of Washington, D.C," Journal of Public Economics, Elsevier, vol. 159(C), pages 160-182.
    6. Edmark, Karin, 2018. "Location Choices of Swedish Independent Schools: How Does Allowing for Private Provision Affect the Geography of the Education Market?," Working Paper Series 1244, Research Institute of Industrial Economics.
    7. Ridley, Matthew & Terrier, Camille, 2018. "Fiscal and education spillovers from charter school expansion," LSE Research Online Documents on Economics 91700, London School of Economics and Political Science, LSE Library.
    8. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.
    9. Karin Edmark, 2019. "Location choices of Swedish independent schools," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 219-239, August.
    10. Christopher R. Walters, 2014. "The Demand for Effective Charter Schools," NBER Working Papers 20640, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

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