Court-Ordered Finance Reforms in the Adequacy Era: Heterogeneous Causal Effects and Sensitivity

Christopher A. Candelaria and Kenneth A. Shores
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Christopher A. Candelaria: Department of Leadership,Policy and Organizations Vanderbilt University Nashville, TN 37203-5721 Author email: chris.candelaria@vanderbilt.edu
Kenneth A. Shores: Human Development andFamily Studies Pennsylvania State University State College, PA 16801 Author email: kshores@psu.edu

Education Finance and Policy, 2019, vol. 14, issue 1, 31-60

Abstract: We provide new evidence about the effect of court-ordered finance reforms that took place between 1989 and 2010 on per-pupil revenues and graduation rates. We account for heterogeneity in the treated and counterfactual groups to estimate the effect of overturning a state's finance system. Seven years after reform, the highest poverty quartile in a treated state experienced an 11.5 percent to 12.1 percent increase in per-pupil spending, and a 6.8 to 11.5 percentage point increase in graduation rates. We subject the model to various sensitivity tests, which provide upper and lower bounds on the estimates. Estimates range, in most cases, from 6 to 12 percentage points for graduation rates.

Date: 2019
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