Inefficiency in School Consolidation Decisions

Ryuichi Tanaka and Eric Weese

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We study school consolidation decisions and examine how the decisions are inefficient. First, we estimate willingness to accept (WTA) a school consolidation of the current school and an adjacent school and the determinants of WTA using an original survey. Then we examine the impact of actual school consolidations on the expenditure of municipalities to estimate the amount that the prefecture and municipality can save from such school consolidations. We find that much of the savings are due to class reductions, and about half the savings are at the prefectural level rather than the municipal level. The estimated WTA of and saving from school consolidations suggest a particular mechanism where the closure of schools could be delayed by inefficient decision-making due to the presence of fiscal externalities.

Pages: 74 pages
Date: 2023-01
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/23e002.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:23002

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().