This paper studies a model where student effort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. It can show, for example, that an improvement in parental outside...

This research examines the effect of accountability threats for low performing schools on resource allocation decisions and provides evidence that schools act with strategic behavior only when the accountability pressure is high. We used a generalization of a traditional regression discontinuity...