You are here:

Education inputs, student performance and school finance reform in Michigan
ARTICLE

Economics of Education Review Volume 28, Number 1 ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

This paper estimates the impact of the Michigan school finance reform, Proposal A, on education inputs and test scores. Using a difference-in-difference estimation strategy, I find that school districts in Michigan used the increase in educational spending generated through Proposal A to increase teacher salaries and reduce class size to a smaller extent. Then, using the foundation allowance created by Proposal A as an instrument, I estimate the causal effect of increased spending on 4th and 7th grade math scores for two test measures – a scaled score and a percent satisfactory measure – and find positive effects of increased spending on 4th grade test scores. A 60% increase in spending increases the percent satisfactory score by one standard deviation. The positive impact of expenditures on test performance seems largely due to higher teacher salaries.

Citation

Chaudhary, L. Education inputs, student performance and school finance reform in Michigan. Economics of Education Review, 28(1), 90-98. Elsevier Ltd. Retrieved February 25, 2021 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2007.11.004

Keywords

References

View References & Citations Map
  1. Card, D., & Krueger, A.B. (1992). Does school quality matter? Returns to education and the characteristics of public schools in the United States . Journal of Political Economy, 100(1), pp. 1-40.
  2. Card, D., & Krueger, A.B. (1996). School resources and student outcomes: An overview of the literature and new evidence from North and South Carolina . Journal of Economic Perspectives, 10(4), pp. 31-50.
  3. Coate, D., & VanderHoff, J. (1999). School finance reform, school experience and student performance: The case of New Jersey . CATO Journal, 19(1), pp. 85-99.
  4. Courant, P., Gramlich, E., & Loeb, S. (1995). Michigan's recent school finance reforms: A preliminary report . American Economics Review, 85(2), pp. 372-377.
  5. Courant, P., & Loeb, S. (1997). Centralization of school finance in Michigan . Journal of Policy Analysis and Management, 16(1), pp. 114-136.
  6. Cullen, J.B., & Loeb, S. (2004). School finance reform in Michigan: Evaluating proposal A . Helping children left behind: State aid and the pursuit of educational equity Cambridge, MA: MIT Press.
  7. Downes, T.A. (1992). Evaluating the impact of school finance reform on the provision of public education: The California case . National Tax Journal, 45(4), pp. 405-419.
  8. Downes, T.A., Dye, R.F., & McGuire, T.J. (1998). Do limits matter? Evidence on the effects of tax limitations on student performance . Journal of Urban Economics, 43(3), pp. 401-417.
  9. Guryan, J. (2001). Does money matter? Regression-discontinuity estimates from education finance reform in Massachusetts. NBER working paper 8269.
  10. Hoxby, C. (2001). All school finance equalizations are not created equal . Quarterly Journal of Economics, 116(4), pp. 1189-1231.
  11. Hanushek, E. (1986). The economics of schooling: Production and efficiency in public schools . Journal of Economic Literature, 24(3), pp. 1141-1177.
  12. Hanushek, E. (1996). Measuring investment in education . Journal of Economic Perspectives, 10(4), pp. 9-30.
  13. Murray, S., Evans, W.N., & Schwab, R. (1998). Education finance reform and the distribution of education resources . American Economic Review, 88(4), pp. 789-812.
  14. Papke, L.E. (2005). The effects of spending on test pass rates: Evidence from Michigan . Journal of Public Economics, 89(5–6), pp. 821-839.
  15. Roy, J. (2004). Effect of a school finance reform on housing variables and socioeconomic segregation: Evidence from Michigan . Mimeo: Princeton University.

These references have been extracted automatically and may have some errors. Signed in users can suggest corrections to these mistakes.

Suggest Corrections to References

Cited By

View References & Citations Map

These links are based on references which have been extracted automatically and may have some errors. If you see a mistake, please contact info@learntechlib.org.