@article{bcbed2b0aac544c28e8789e9535b4af2,
title = "Using market valuation to assess public school spending",
abstract = "We examine whether school expenditures are valued by potential residents and whether the current level of public school provision is inefficient by estimating the effect of state education aid on residential property values. We find evidence that, overall, state aid is valued by potential residents and that school districts do not overspend on education. However, we find that districts may overspend in areas where residents have fewer schooling options but find no difference in efficiency by the degree of district unionization. One interpretation of these results is that increased competition may reduce overspending on public schools in some areas.",
keywords = "Competition, Education spending, Efficiency, School choice, Tiebout",
author = "Lisa Barrow and Rouse, {Cecilia Elena}",
note = "Funding Information: We thank Roland B{\'e}nabou, Ben Bernanke, David Card, Anne Case, Jonas Fisher, Jonathan Gruber, Jeff Kling, Alan Krueger, Caroline Hoxby, Abigail Payne, Thomas Romer, Lara Shore-Sheppard, and Daniel Sullivan for helpful conversations, and seminar participants at the American Education Finance Association meetings, Cornell University, the Federal Reserve Bank of Chicago, Hunter College, the John F. Kennedy School of Government, the Joint Center for Poverty Research at the University of Chicago, the meeting of the MacArthur Research Network on Inequality and Economic Performance in Cambridge, MA, 1999, the Children{\textquoteright}s Workshop of the National Bureau of Economic Research, the National Center for Education Statistics Data Conference, Princeton University, the World Congress of the Econometric Society, and anonymous referees for insightful comments and suggestions. We also thank Olivier Deschenes, Jonathan Moore, Daniel Fernholz, Melissa Goodwin, Yvonne Peeples, Jeff Wilder and particularly Kimberly Sked for outstanding research assistance. Barrow thanks the National Science Foundation, and Rouse thanks the Mellon Foundation for financial support. The views expressed in this paper are those of the authors and are not necessarily those of the Federal Reserve Bank of Chicago or the Federal Reserve System. All errors are ours.",
year = "2004",
month = aug,
doi = "10.1016/S0047-2727(03)00024-0",
language = "English (US)",
volume = "88",
pages = "1747--1769",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier B.V.",
number = "9-10",
}