Strategic Competition Amongst Public Schools

Daniel L. Millimet ()

No 197, Econometric Society 2004 North American Summer Meetings from Econometric Society

Abstract: 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. However, the present system is not devoid of competition even absent such reforms; public schools compete for students through the Tiebout (1956) process. Thus, this papers seeks to answer two questions: (i) Does competition alter the behavior of public school districts? and (ii) Do public school districts compete with neighboring public school districts? To answer such questions, we utilize panel data from Illinois over the period 1990 � 2000 and estimate a multi-dimensional mixed regressive, spatial autoregressive model. We find robust evidence that public school districts incorporate the educational input decisions of other public school districts in the same county into their decision calculus, thereby acting strategically when setting own input levels

Keywords: School quality; School choice; Tiebout; Spatial autocorrelation (search for similar items in EconPapers)
JEL-codes: C31 H4 I2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-ure
Date: 2004-08-11
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Related works:
Journal Article: Strategic competition amongst public schools (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:ecm:nasm04:197

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