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ERIC Number: ED463592
Record Type: RIE
Publication Date: 2002
Pages: 19
Abstractor: N/A
Relationship between School District Expenditures in Various Categories and Student Performance.
Jacques, Charles; Brorsen, B. Wade
The effect of school expenditures on student performance has been a subject of much study and controversy. This paper provides additional empirical evidence about the effects of various categories of school spending on student performance. An educational production function is estimated using achievement test scores to proxy school output, with socioeconomic characteristics and expenditures in various categories as inputs. The data are school-district-level expenditures from Oklahoma. Unlike most past research, a correction is made for heteroskedasticity created by differences in school district size. The correction for heteroskedasticity leads to statistical tests with greater power. Test scores were positively related to expenditures on instruction and instructional support, and are negatively related to expenditures on student support, such as counseling and school administration. The negative effect of counseling and administration could be due to counselors taking up classroom time or administrators using classroom time with announcements or assemblies. Alternatively, the causality could go the other way. It could be that schools with problems hire more administrators and counselors. The socioeconomic variables included may not fully capture the problems that a school faces. The results do show that spending is useful when targeted toward instruction. The effect, though statistically significant, is not large. Thus, the research finds that money can matter if it is spent on instruction. (Contains 16 references and 3 tables.) (Author)
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A