This paper presents a simple two-period, dual economy model in which migration options may affect the informal financing of educational investments. When credit contracts are universally available and perfectly enforceable, spatially varied returns to human capital have no effect on educational...

This paper demonstrates how linear programming can be used to derive optimal values of the parameters in formulas allocating state aid to public schools in New York. Although disparities in expenditures and tax rates among districts are not easily reduced by formula modifications, the model...