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ERIC Number: ED609872
Record Type: Non-Journal
Publication Date: 2020-Jul-12
Pages: 53
Abstractor: As Provided
Who Benefits from Local Financing of Public Services? A Causal Analysis. Program on Education Policy and Governance Working Papers Series. PEPG 20-03
Lastra-Anadón, Carlos X.; Peterson, Paul E.
Program on Education Policy and Governance
The efficiency-equity trade-offs in public service delivery may be influenced by the dependency of local governments on their own resources rather than inter-governmental grants. School districts in the United States are expected both to produce human capital efficiently and to provide educational opportunity equally. To ascertain school district trade-offs, we estimate effects of revenue source on student performances in math and reading. Achievement is estimated from 225,000 observations weighted to be district representative. Estimates are made with OLS [ordinary least squares], geographic discontinuity models exploiting differences at state borders, and 2SLS [two-stage least squares] models that use changes in housing prices as an instrument. For every 10 percent increase in local revenue share, achievement increases by a sizeable 0.02 to 0.06 standard deviations. Gains for students from low socio-economic backgrounds are about half those from higher ones. Both voice and exit channels moderate the efficiency-equity trade-off. Implications for federalism and state policy are discussed.
Program on Education Policy and Governance. Harvard University, Kennedy School of Government, 79 John F. Kennedy Street, Taubman 304, Cambridge, MA 02138. Tel: 617-495-7976; Fax: 617-496-4428; e-mail:; Web site:
Publication Type: Reports - Research
Education Level: Elementary Education; Grade 8; Junior High Schools; Middle Schools; Secondary Education
Audience: N/A
Language: English
Sponsor: Walton Family Foundation; Lynde and Harry Bradley Foundation
Authoring Institution: Harvard University, Program on Education Policy and Governance
Identifiers - Assessments and Surveys: National Assessment of Educational Progress
Grant or Contract Numbers: N/A