Institutional Effects in a Simple Model of Educational Production

John H. Bishop () and Ludger Woessmann
Additional contact information
John H. Bishop: Cornell University

No 484, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper presents a model of educational production which tries to make sense of recent evidence on effects of institutional arrangements on student performance. In a simple principal-agent framework, students choose their learning effort to maximize their net benefits, while the government chooses educational spending to maximize its net benefits. In the jointly determined equilibrium, schooling quality is shown to depend on several institutionally determined parameters. The impact on student performance of institutions such as central examinations, centralization versus school autonomy, teachers' influence, parental influence, and competition from private schools is analyzed. Furthermore, the model can rationalize why positive resource effects may be lacking in educational production.

Keywords: institutions of the education system; principal-agent model; educational production (search for similar items in EconPapers)
JEL-codes: H52 I20 L32 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2002-04
New Economics Papers: this item is included in nep-lab and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Education Economics, 2004, 12 (1), 17-38

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Related works:
Journal Article: Institutional Effects in a Simple Model of Educational Production (2004)
Working Paper: Institutional effects in a simple model of educational production (2004)
Working Paper: Institutional Effects in a Simple Model of Educational Production (2002)
Working Paper: Institutional Effects in a Simple Model of Educational Production (2001)
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