THE EFFICIENCY OF LOCAL SCHOOL FINANCE.
This article focuses on the federal aid to education. The most prevalent arguments for increased state and federal aid to education are concerned with equity criteria. Relatively little has been written or discussed concerning the efficiency aspects of aid to education. This paper uses a median vote...
| Publicado en: | Review of Economics & Statistics Vol. 58; no. 2; pp. 255 - 259 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
MIT Press
May76
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | This article focuses on the federal aid to education. The most prevalent arguments for increased state and federal aid to education are concerned with equity criteria. Relatively little has been written or discussed concerning the efficiency aspects of aid to education. This paper uses a median voter decision model and certain assumptions about the functional form of demand functions to obtain an estimate of the efficient level of expenditure for each of 104 school districts in New York State. A utility maximizing household will demand that quantity of school expenditures for which the marginal utility of a unit increment is equal to price times the marginal utility of income. The marginal cost to a household of a $1 increase in expenditure per pupil can also be determined. A household pays a proportion of the district marginal cost according to the ratio of the value of its property to total district property. The commercial and industrial property lowers the price of public expenditures. The efficient quantity of expenditure in a district is that for which the sum of the marginal benefits of all households equals the marginal social cost. |
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