School district consolidation policies: endogenous cost inefficiency and saving reversals
Some education policy studies suggest that consolidation of public school districts saves resources. However, endogeneity in cost models would result in incorrect estimates of the effects of consolidation. We use a new stochastic frontier methodology to examine district expenditures while handling e...
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| Veröffentlicht in: | Empirical economics 2019-05, Vol.56 (5), p.1729-1768 |
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| container_title | Empirical economics |
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| creator | Karakaplan, Mustafa U. Kutlu, Levent |
| description | Some education policy studies suggest that consolidation of public school districts saves resources. However, endogeneity in cost models would result in incorrect estimates of the effects of consolidation. We use a new stochastic frontier methodology to examine district expenditures while handling endogeneity. Using the data from California, we find that the effects of student achievement and education market concentration on expenditure per pupil are substantially larger when endogeneity is handled. Our findings are robust to concerns such as instrumental variable adequacy and spatial interactions. Our consolidation simulations indicate that failure to address endogeneity can result in unrealistic expectations of savings. |
| doi_str_mv | 10.1007/s00181-017-1398-z |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0377-7332 |
| ispartof | Empirical economics, 2019-05, Vol.56 (5), p.1729-1768 |
| issn | 0377-7332 1435-8921 |
| language | eng |
| recordid | cdi_proquest_journals_1982000512 |
| source | PAIS Index; EBSCOhost Business Source Complete; Springer Nature - Complete Springer Journals |
| subjects | Academic achievement Consolidation Cost control Econometrics Economic models Economic theory Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Economies of scale Education finance Education policy Endogenous Expenditures Finance Insurance Management Market concentration Savings School districts Statistics for Business Students |
| title | School district consolidation policies: endogenous cost inefficiency and saving reversals |
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