IDEAS home Printed from https://ideas.repec.org/a/bla/pbudge/v39y2019i3p22-43.html
   My bibliography  Save this article

The Efficiency‐Equity Tradeoff in School Aid: How Efficiency Targeting in Lump‐Sum Aid Generates Unexpected Effects

Author

Listed:
  • Jay E. Ryu

Abstract

Formulas of state aid to local school districts have recently incorporated efficiency targeting, which incentivizes school districts to enhance the efficiency of school administration and teaching. This paper shows that efficiency targeting in lump‐sum foundation aid fails to make school districts more efficient than typical foundation aid does. Efficiency targeting instead improves fiscal equity across school districts under almost all scenarios. This paper also clarifies why these unexpected equity effects take place and suggests feasible and implementable alternatives to obtain the efficiency improvement from efficiency targeting.

Suggested Citation

  • Jay E. Ryu, 2019. "The Efficiency‐Equity Tradeoff in School Aid: How Efficiency Targeting in Lump‐Sum Aid Generates Unexpected Effects," Public Budgeting & Finance, Wiley Blackwell, vol. 39(3), pages 22-43, September.
    • Handle: RePEc:bla:pbudge:v:39:y:2019:i:3:p:22-43
    DOI: 10.1111/pbaf.12217
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pbaf.12217
    Download Restriction: no
    File URL: https://libkey.io/10.1111/pbaf.12217?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
    ---><---

    More about this item

    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:bla:pbudge:v:39:y:2019:i:3:p:22-43. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0275-1100 .

    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.