A new model for equitable and efficient resource allocation to schools: the Israeli case

Iris BenDavid-Hadar and Adrian Ziderman

Education Economics, 2011, vol. 19, issue 4, 341-362

Abstract: This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper: Improvement in the Educational Achievement Distribution. The development of the budget allocation formula is demonstrated utilizing Israeli data. Large-scale, nationwide datasets relating students’ academic achievement to student background variables, teacher profiles, and school characteristics were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.

Date: 2011
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DOI: 10.1080/09645291003726467

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