IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v188y2021i1d10.1007_s11127-020-00812-7.html
   My bibliography  Save this article

A neighborly welcome? Charter school entrance and public school competition on the capital margin

Author

Listed:
  • Michael S. Kofoed

    (United States Military Academy)

  • Christopher Fawson

    (Utah State University)

Abstract

In 1999, the Utah State Legislature allowed charter schools to enter and be administered under the broad oversight of school districts. The structure of the Utah Charter School provides a natural experiment to study a unique way that traditional public schools compete against new charter schools. Using data from the 1992–2012 waves of the Common Core of Data, we estimated fixed effect models to measure the increase in capital expenditures by traditional public schools when faced with competition by new charter schools. We find that total capital outlay and spending on improving existing structures increases with charter competition, but new construction and instructional spending does not increase at a statistically significant level.

Suggested Citation

  • Michael S. Kofoed & Christopher Fawson, 2021. "A neighborly welcome? Charter school entrance and public school competition on the capital margin," Public Choice, Springer, vol. 188(1), pages 75-94, July.
  • Handle: RePEc:kap:pubcho:v:188:y:2021:i:1:d:10.1007_s11127-020-00812-7
    DOI: 10.1007/s11127-020-00812-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11127-020-00812-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11127-020-00812-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Parag A. Pathak & Christopher R. Walters, 2013. "Explaining Charter School Effectiveness," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 1-27, October.
    2. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2010. "The Value of School Facility Investments: Evidence from a Dynamic Regression Discontinuity Design," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 215-261.
    3. Figlio, David N. & Rouse, Cecilia Elena, 2006. "Do accountability and voucher threats improve low-performing schools?," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 239-255, January.
    4. Couch, Jim F & Shughart, William F, II & Williams, Al L, 1993. "Private School Enrollment and Public School Performance," Public Choice, Springer, vol. 76(4), pages 301-312, August.
    5. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    6. Cardon, James H., 2003. "Strategic quality choice and charter schools," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 729-737, March.
    7. Kevin Booker & Tim R. Sass & Brian Gill & Ron Zimmer, 2011. "The Effects of Charter High Schools on Educational Attainment," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 377-415.
    8. Neilson, Christopher A. & Zimmerman, Seth D., 2014. "The effect of school construction on test scores, school enrollment, and home prices," Journal of Public Economics, Elsevier, vol. 120(C), pages 18-31.
    9. Martorell, Paco & Stange, Kevin & McFarlin, Isaac, 2016. "Investing in schools: capital spending, facility conditions, and student achievement," Journal of Public Economics, Elsevier, vol. 140(C), pages 13-29.
    10. Amanda L. Griffith & Kevin N. Rask, 2016. "The Effect Of Institutional Expenditures On Employment Outcomes And Earnings," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1931-1945, October.
    11. Imberman, Scott A., 2011. "The effect of charter schools on achievement and behavior of public school students," Journal of Public Economics, Elsevier, vol. 95(7), pages 850-863.
    12. Jones, John T. & W. Zimmer, Ron, 2001. "Examining the impact of capital on academic achievement," Economics of Education Review, Elsevier, vol. 20(6), pages 577-588, December.
    13. repec:mpr:mprres:6930 is not listed on IDEAS
    14. Stoddard, Christiana & Corcoran, Sean P., 2007. "The political economy of school choice: Support for charter schools across states and school districts," Journal of Urban Economics, Elsevier, vol. 62(1), pages 27-54, July.
    15. Ni, Yongmei, 2009. "The impact of charter schools on the efficiency of traditional public schools: Evidence from Michigan," Economics of Education Review, Elsevier, vol. 28(5), pages 571-584, October.
    16. Chakrabarti, Rajashri & Roy, Joydeep, 2016. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Journal of Urban Economics, Elsevier, vol. 91(C), pages 88-103.
    17. C. Kirabo Jackson & Rucker C. Johnson & Claudia Persico, 2016. "The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 157-218.
    18. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    19. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    20. Bettinger, Eric P., 2005. "The effect of charter schools on charter students and public schools," Economics of Education Review, Elsevier, vol. 24(2), pages 133-147, April.
    21. Glomm, Gerhard & Harris, Douglas & Lo, Te-Fen, 2005. "Charter school location," Economics of Education Review, Elsevier, vol. 24(4), pages 451-457, August.
    22. Ni, Yongmei & Rorrer, Andrea K., 2012. "Twice considered: Charter schools and student achievement in Utah," Economics of Education Review, Elsevier, vol. 31(5), pages 835-849.
    23. Margaret Brehm & Scott A. Imberman & Michael Naretta, 2017. "Capitalization of Charter Schools into Residential Property Values," Education Finance and Policy, MIT Press, vol. 12(1), pages 1-27, Winter.
    24. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    25. Timothy J. Gronberg & Dennis W. Jansen & Mustafa U. Karakaplan & Lori L. Taylor, 2015. "School district consolidation: Market concentration and the scale‐efficiency tradeoff," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 580-597, October.
    26. repec:wly:soecon:v:82:2:y:2015:p:580-597 is not listed on IDEAS
    27. Anderson, Gary M. & Shughart, William II & Tollison, Robert D., 1991. "Educational achievement and the cost of bureaucracy," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 29-45, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Feng & Harris, Douglas N., 2023. "The market-level effects of charter schools on student outcomes: A national analysis of school districts," Journal of Public Economics, Elsevier, vol. 228(C).
    2. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.
    3. Alessandro Belmonte & Vincenzo Bove & Giovanna D'Inverno & Marco Modica, 2017. "School Infrastructure Spending and Educational Outcomes in Northern Italy," Working Papers of LEER - Leuven Economics of Education Research 617760, KU Leuven, Faculty of Economics and Business (FEB), LEER - Leuven Economics of Education Research.
    4. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    5. Filer, Randall K. & Münich, Daniel, 2013. "Responses of private and public schools to voucher funding," Economics of Education Review, Elsevier, vol. 34(C), pages 269-285.
    6. Ridley, Matthew & Terrier, Camille, 2018. "Fiscal and education spillovers from charter school expansion," LSE Research Online Documents on Economics 91700, London School of Economics and Political Science, LSE Library.
    7. Margaret Brehm & Scott A. Imberman & Michael Naretta, 2017. "Capitalization of Charter Schools into Residential Property Values," Education Finance and Policy, MIT Press, vol. 12(1), pages 1-27, Winter.
    8. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    9. Belmonte, Alessandro & Bove, Vincenzo & D’Inverno, Giovanna & Modica, Marco, 2020. "School infrastructure spending and educational outcomes: Evidence from the 2012 earthquake in Northern Italy," Economics of Education Review, Elsevier, vol. 75(C).
    10. María Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Millimet, Daniel L. & Rangaprasad, Vasudha, 2007. "Strategic competition amongst public schools," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 199-219, March.
    12. Chakrabarti, Rajashri & Roy, Joydeep, 2016. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Journal of Urban Economics, Elsevier, vol. 91(C), pages 88-103.
    13. Felipe M. Goncalves, 2015. "The Effects of School Construction on Student and District Outcomes: Evidence from a State-Funded Program in Ohio," Working Papers 593, Princeton University, Department of Economics, Industrial Relations Section..
    14. R. Jisung Park & Joshua Goodman & Michael Hurwitz & Jonathan Smith, 2020. "Heat and Learning," American Economic Journal: Economic Policy, American Economic Association, vol. 12(2), pages 306-339, May.
    15. Pierre Lefebvre & Philip Merrigan, 2022. "Why Subsidize Independent Schools? Estimating the Effect of a Unique Canadian Schooling Model on Educational Attainment," Mathematics, MDPI, vol. 10(4), pages 1-22, February.
    16. Martorell, Paco & Stange, Kevin & McFarlin, Isaac, 2016. "Investing in schools: capital spending, facility conditions, and student achievement," Journal of Public Economics, Elsevier, vol. 140(C), pages 13-29.
    17. Bruhn, Jesse & Imberman, Scott & Winters, Marcus, 2022. "Regulatory arbitrage in teacher hiring and retention: Evidence from Massachusetts Charter Schools," Journal of Public Economics, Elsevier, vol. 215(C).
    18. Bo Feng, 2023. "Charter school proliferation and school district fiscal stress, a chicken‐egg problem," Growth and Change, Wiley Blackwell, vol. 54(4), pages 853-869, December.
    19. John D. Singleton, 2019. "Incentives and the Supply of Effective Charter Schools," American Economic Review, American Economic Association, vol. 109(7), pages 2568-2612, July.
    20. Helen F. Ladd & John D. Singleton, 2020. "The Fiscal Externalities of Charter Schools: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 15(1), pages 191-208, Winter.

    More about this item

    Keywords

    Charter schools; Education market; Capital facility investment;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:188:y:2021:i:1:d:10.1007_s11127-020-00812-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.