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Competition and Resource Effectiveness in Education


  • David Mayston


This paper examines the impact of competition in the markets for teachers and for housing on the long-standing issue of the influence of school resourcing on educational attainment. The existence of such competition is found to imply not only downward bias in many earlier empirical estimates of the role of resources in the educational production function, but also powerful general equilibrium effects, especially for the impact of relative levels of school resources upon the distribution of relative levels of educational attainment across individual schools, that highlight the importance of how resources are distributed across individual schools. The paper derives optimal resource allocation rules for distributing government educational budgets across individual schools and examines the properties of the associated funding formulae.

Suggested Citation

  • David Mayston, 2006. "Competition and Resource Effectiveness in Education," Discussion Papers 06/05, Department of Economics, University of York.
  • Handle: RePEc:yor:yorken:06/05

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    References listed on IDEAS

    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 577-599.
    2. Hanushek, Eric A & Rivkin, Steven G & Taylor, Lori L, 1996. "Aggregation and the Estimated Effects of School Resources," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 611-627, November.
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    5. David M. Brasington, 1999. "Which Measures of School Quality Does the Housing Market Value?," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 395-414.
    6. Bradley, Steve, et al, 2000. " Testing for Quasi-Market Forces in Secondary Education," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(3), pages 357-390, July.
    7. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
    8. Dolton, Peter J, 1990. "The Economics of UK Teacher Supply: The Graduate's Decision," Economic Journal, Royal Economic Society, vol. 100(400), pages 91-104, Supplemen.
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    14. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-652, September.
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    1. repec:spr:annopr:v:250:y:2017:i:1:d:10.1007_s10479-015-2074-3 is not listed on IDEAS
    2. Steve Bradley & Jim Taylor, 2010. "Diversity, Choice and the Quasi-market: An Empirical Analysis of Secondary Education Policy in England," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 1-26, February.
    3. David Mayston, 2015. "Analysing the effectiveness of public service producers with endogenous resourcing," Journal of Productivity Analysis, Springer, vol. 44(1), pages 115-126, August.
    4. J Taylor & S Bradley & G Migali, 2009. "The distributional impact of increased school resources: the Specialist Schools Initiative and the Excellence in Cities Programme," Working Papers 602528, Lancaster University Management School, Economics Department.
    5. David J. Mayston, 2015. "Data envelopment analysis, endogeneity and the quality frontier for public services," Discussion Papers 15/05, Department of Economics, University of York.

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