All School Finance Equalizations Are Not Created Equal
School finance equalization has probably affected American schools more than any other reform of the last 30 years. Understanding it is a prerequisite for making optimal social investments in human capital. Yet, it is poorly understood. In this paper I explain why: it differs from conventional redistribution because it is based on property values, which are endogenous to schools' productivity, taste for education, and the school finance system itself. I characterize equalization schemes and show why some "level down" and others "level up." Schemes that strongly level down have unintended consequences: even poor districts can end up worse off. I also show how school finance equalization affects property prices, private school attendance, and student achievement. © 2001 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Year of publication: |
2001
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Authors: | Hoxby, Caroline M. |
Published in: |
The Quarterly Journal of Economics. - MIT Press. - Vol. 116.2001, 4, p. 1189-1231
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Publisher: |
MIT Press |
Saved in:
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