The state of Michigan radically altered its school finance system in 1994. This was a legislature-led reform that took place somewhat unexpectedly and without the intervention of any courts. The new plan, called Proposal A, significantly increased the state share of K-12 spending and entailed...

The paper studies the equilibrium size of countries. Individuals in small countries have greater influence over the nature of political decision making while individuals in large countries have the advantage of more public goods and lower tax rates. The model implies that (i) there exists...

In a federation, where different levels of government tax the same base, one can observe two types of externalities: a horizontal externality, working among jurisdictions of the same hierarchical level and leading to tax rates that are suboptimally low; and a vertical externality, working...

Recent research suggests that income redistribution preferences vary across identity groups. We employ a new pattern recognition technology to uncover what these groups are. Using data from the General Social Survey, we present a new stylized fact that preferences for governmental provision of...

This paper examines the impact of vouchers in general, and voucher design in particular, on public school performance. It argues that all voucher programs are not created equal. There are often fundamental differences in voucher designs that affect public school incentives differently and induce...

Researchers, policymakers, and parents are giving education reforms involving expanded school choice increased attention. Many view the heightened competition that would presumably result from such reforms as a panacea for the ills currently plaguing the public education system in the US....