THE IMPACT OF ETHNIC HETEROGENEITY ON EDUCATION SPENDING: A SPATIAL ECONOMETRIC ANALYSIS OF UNITED STATES SCHOOL DISTRICTS

Gbenga Ajilore

Review of Urban & Regional Development Studies, 2011, vol. 23, issue 1, 66-76

Abstract: In the public finance literature it is well understood that a community's spending can be affected by neighboring communities’ spending. It is relatively straightforward to see why these spillovers exist. For example, if a school district increases its spending on public education, this could affect the spending level of neighboring school districts. This paper uses spatial analysis to test the hypothesis that a school district's ethnic heterogeneity affects support for public education. Using a Spatial Lag Model and a national panel of U.S. school districts, I find that spatial dependence does exist in the data and that ethnic heterogeneity is negatively related to school district spending.

Date: 2011
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https://doi.org/10.1111/j.1467-940X.2011.00178.x

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