Theoretical Models of School District Expenditure Determination and the Impact of Grants-In-Aid.

by Stephen M. Barro


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback85 pages $25.00 $20.00 20% Web Discount

These models are based on the concept that school district decisionmakers seek an optimum balance between education program levels and tax burdens imposed on the community, subject to a budget constraint. A model is derived in which spending depends positively on community income and lump-sum grants and negatively on the relative price of educational inputs, the pupil/household ratio, and the local share of matching grants. Extensions take account of nonschool taxes, the composition of the property tax base (residential vs. business property), equalization features of state aid formulas, categorical grants, and enrollment growth. Since the models include lump-sum aid, matching aid, and interactions between them, they are potentially useful for selecting optimal aid formulas for accomplishing a grantor's objectives. Explicit functional forms of the expenditure relationships are developed and variants of the model that can be tested with different databases are described. 85 pp.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.