School vouchers may increase the competition public school districts face. Greater competition may spur public schools to improve student outcomes, which reliably predict labor market productivity and earnings. Previous school competition studies do not use spatial statistics; they fail to...

A growing literature documents the existence of strategic political reactions to public expenditure in one jurisdiction on either neighboring or reference jurisdictions. The latter might give raise to downward expenditure spiral, or "race to the bottom". However, in ascertaining the empirical...