Skip to main content
SpringerLink
Log in

Public- and Private-School Competition: The Spatial Education Production Function

  • Conference paper
Time and Space in Economics

Summary

School vouchers may increase the competition that public-school districts face. Greater competition may spur public schools to improve student outcomes, which reliably predict labor market productivity and earnings. Previous school competition studies did not use spatial statistics, so they failed to incorporate spillovers and the effect of omitted variables into their education production functions. Significant spatial effects are found in all regressions, and spatial statistics improve adjusted R 2 values. There seems to be no consistent association between private-school attendance rates and public-school achievement, or between the number of public-school districts in a county and public-school performance. Competitive effects, which seem plausible in nonspatial regressions, dissipate when spatial statistics are used. When school inputs appeared to be statistically significant in nonspatial regressions, the spatial regressions generally made the significance disappear. Poverty appeared to depress reading and writing rates, but this effect disappeared in the spatial models.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Akerhielm K (1995) Does class size matter? Econ Educ Rev 14:229–241

    Article  Google Scholar 

  • Anselin L (1988) Spatial econometrics: methods and models. Kluwer Academic, London, Dordrecht, pp 35, 58, 59, 103, 181

    Google Scholar 

  • Barry RP, Pace RK (1999) A Monte Carlo estimator of the log determinant of large sparse matrices. Linear Algebra Appl 289:41–54

    Article  MATH  MathSciNet  Google Scholar 

  • Bishop J (1989) Is the test score decline responsible for the productivity growth decline? Am Econ Rev 79:178–197

    Google Scholar 

  • Borland MV, Howsen RM (1996) Competition, expenditures and student performance in mathematics: a comment on Couch et al. Public Choice 87:395–400

    Article  Google Scholar 

  • Bradford DF, Oates WE (1974) Suburban exploitation of central cities and governmental structure. In: Hochman HM, Peterson GE (eds) Redistributions through public choice. Columbia University Press, New York, London, p 44–90

    Google Scholar 

  • Brasington DM (1997) School district consolidation, student performance, and housing values. J Reg Anal Policy 27:43–54

    Google Scholar 

  • Brasington DM (1999) Joint provision of public schooling: the consolidation of school districts. J Public Econ 73:373–393

    Article  Google Scholar 

  • Brasington DM, Haurin DR (2006) Educational outcomes and house values: a test of the value-added approach. J Reg Sci 46:245–268

    Article  Google Scholar 

  • Brasington DM, Hite D (2005) Demand for environmental quality: a spatial hedonic analysis. Reg Sci Urban Econ 35:57–82

    Article  Google Scholar 

  • Couch JF, Shughart WF, Williams AL (1993) Private school enrollment and public school performance. Public Choice 76:301–312

    Article  Google Scholar 

  • Davidson R, MacKinnon JG (1981) Several tests for model specification in the presence of multiple alternatives. Econometrica 49:781–793

    Article  MATH  MathSciNet  Google Scholar 

  • Dee TS (1998) Competition and the quality of public schools. Econ Educ Rev 17:419–427

    Article  Google Scholar 

  • Edwards, JHY (1986) A note on the publicness of local goods: evidence from New York State municipalities. Can J Econ 19:568–573

    Article  Google Scholar 

  • Epple D, Romano RE (1998) Competition between private and public schools, vouchers, and peer-group effects. Am Econ Rev 88:33–62

    Google Scholar 

  • Falkinger J (1994) The private provision of public goods when the relative size of contributions matters. Finanzarchiv 51:358–371

    Google Scholar 

  • Figlio DN (1999) Functional form and the estimated effects of school resources. Econ Educ Rev 18:241–252

    Article  Google Scholar 

  • Fowler WJ Jr, Walberg HJ (1991) School size, characteristics, and outcomes. Educ Eval Policy Anal 13:189–202

    Article  Google Scholar 

  • Friedkin NE, Necochea J (1988) School system size and performance: a contingency perspective. Educ Eval Policy Anal 10:237–249

    Article  Google Scholar 

  • Gomes-Neto JB, Hanushek EA, Leite RH, et al. (1997) Health and schooling: evidence and policy implications for developing countries. Econ Educ Rev 16:271–282

    Article  PubMed  CAS  Google Scholar 

  • Griffith DA (1988) Advanced spatial statistics: special topics in the exploration of quantitative spatial data series. Kluwer, Dordrecht, p 94–107

    Google Scholar 

  • Haller EJ (1992) High-school size and student indiscipline: another aspect of the school consolidation issue? Educ Eval Policy Anal 14:145–156

    Article  Google Scholar 

  • Hanushek EA (1986) The economics of schooling: production and efficiency in public schools. J Econ Lit 24:1141–1177

    Google Scholar 

  • Hanushek EA (1992) The trade-off between child quantity and quality. J Polit Econ 100:84–117

    Article  Google Scholar 

  • Hanushek EA, Taylor LL (1990) Alternative assessments of the performance of schools: measurement of state variations in achievement. J Hum Resour 25:179–201

    Article  Google Scholar 

  • Hayes KJ, Taylor LL (1996) Neighborhood school characteristics: what signals quality to homebuyers? Fed Reserve Bank Dallas Econ Rev 3:2–9

    Google Scholar 

  • Hoxby CM (1996) Are efficiency and equity in school finance substitutes or complements? J Econ Perspect 10:51–72

    Google Scholar 

  • Hoxby CM (1998) What do America’s “traditional” forms of school choice teach us about school choice reforms? Fed Reserve Bank New York Econ Policy Rev 4:47–59

    Google Scholar 

  • Hoxby CM (2000) Does competition among public schools benefit students and taxpayers? Am Econ Rev 90:1209–1238

    Article  Google Scholar 

  • Ireland NJ (1990) The mix of social and private provision of goods and services. J Public Econ 43:201–219

    Article  Google Scholar 

  • Jewell RW (1989) School and school district size relationships: cost, results, minorities, and private school enrollments. Educ Urban Soc 21:140–153

    Article  Google Scholar 

  • Kennedy PE, Siegfried JJ (1997) Class size and achievement in introductory economics: evidence from the TUCE III data. Econ Educ Rev 16:385–394

    Article  Google Scholar 

  • LeSage JP (1997a) Regression analysis of spatial data. J Reg Anal Policy 27:83–94

    Google Scholar 

  • LeSage JP (1997b) Bayesian estimation of spatial autoregressive models. Int Reg Sci Rev 20:113–129

    Article  Google Scholar 

  • Loury LD, Garman D (1995) College selectivity and earnings. J Labor Econ 13:289–308

    Article  Google Scholar 

  • Maddala GS (1992) Introduction to econometrics. Prentice-Hall, Englewood Cliffs, p 395

    Google Scholar 

  • Merrifield J (2002) School choices: true and false. The Independent Institute, Oakland

    Google Scholar 

  • MESA Group (1994) School district data book. National Center for Education Statistics, US Department of Education, Washington

    Google Scholar 

  • Meyer RH (1996) Value-added indicators of school performance. In: Hanushek EA, Jorgenson DW (eds) Improving America’s schools: the role of incentives. National Academy Press, Washington, p 97–223

    Google Scholar 

  • Murdoch JC, Rahmatian M, Thayer MA (1993) A spatially autoregressive median voter model of recreational expenditures. Public Financ Q 21:334–350

    Article  Google Scholar 

  • Murnane RJ, Willett JB, Levy F (1995) The growing importance of cognitive skills in wage determination. Rev Econ Stat 77:251–266

    Article  Google Scholar 

  • Ohio Department of Education (1985) Maps of Ohio school districts: city, exempted, local. State of Ohio, Columbus

    Google Scholar 

  • Ohio Department of Education (1993) Ohio educational directory: 1992–1993 school year. State of Ohio, Columbus

    Google Scholar 

  • rept.html

    Google Scholar 

  • Ornstein AC (1993) School consolidation vs. decentralization: trends, issues, and questions. Urban Rev 25:167–174

    Article  Google Scholar 

  • Pace RK, Barry RP (1998) Simulating mixed regressive spatially autoregressive estimators. Comput Stat 13:397–418

    MATH  Google Scholar 

  • Ramanathan R (1998) Introductory econometrics with applications. Dryden Press, Fort Worth, Texas, USA, p 170

    Google Scholar 

  • Reiter M, Weichenrieder A (1997) Are public goods public? A critical survey of the demand estimates for local public services. Finanzarchiv 54:374–408

    Google Scholar 

  • Rothstein J (2005) Does competition among public schools benefit students and taxpayers? A comment on Hoxby (2000). National Bureau of Economic Research, Inc, NBER Working Paper No. 11215

    Google Scholar 

  • Sander W (1996) Catholic grade schools and academic achievement. J Hum Resour 31:540–548

    Article  Google Scholar 

  • Stern D (1989) Educational cost factors and student achievement in grades three and six: some new evidence. Econ Educ Rev 8:149–158

    Article  Google Scholar 

  • Voß W (1991) Nutzen-spillover-effekte als problem des kommanalen finanzausgleichs: ein beitrag zur okonomischen rationalitat des ausgleichs zentralitatsbedingten finanzbedarfs, Frankfurt a.M.

    Google Scholar 

  • Willms JD, Echols F (1992) Alert and inert clients: the Scottish experience of parental choice of schools. Econ Educ Rev 11:339–350

    Article  Google Scholar 

  • Wyckoff JH (1984) The nonexcludable publicness of primary and secondary public education. J Public Econ 24:331–351

    Article  Google Scholar 

  • Zanzig BR (1997) Measuring the impact of competition in local government education markets on the cognitive achievement of students. Econ Educ Rev 16:431–444

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Economics Department, Louisiana State University, Baton Rouge, LA, 70803, USA

    David M. Brasington

Authors
  1. David M. Brasington
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Faculty of Economics, Chuo University, 742-1 Higashinakano, Hachioji, Tokyo, 192-0393, Japan

    Toichiro Asada Ph.D. (Professor) & Toshiharu Ishikawa Ph.D. (Professor) (Professor) &  (Professor)

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Springer

About this paper

Cite this paper

Brasington, D.M. (2007). Public- and Private-School Competition: The Spatial Education Production Function. In: Asada, T., Ishikawa, T. (eds) Time and Space in Economics. Springer, Tokyo. https://doi.org/10.1007/978-4-431-45978-1_10

Download citation

Publish with us

Policies and ethics

Search

Navigation