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Do administrators respond to their accountability ratings? The response of school budgets to accountability grades

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  • Craig, Steven G.
  • Imberman, Scott A.
  • Perdue, Adam

Abstract

This paper examines how school administrators reallocate resources to schools in response to marginal changes in accountability ratings. We study this through an analysis of budgetary changes for schools on the margin of distinct rating boundaries. By determining how close each school is to an accountability grade change we are able to conduct a regression discontinuity analysis on schools that are on either side of the sharp line that separates school ratings. If administrators care about accountability ratings on the margin we would expect to see changes in budgetary allocations that reward higher performing, or punish lower performing, schools. Using data in Texas from 1994 to 2002, we find evidence suggesting that schools with higher ratings received more funds than others, and the differential funds were targeted toward administration/training, counseling and extra-curricular activities.

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  • Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2015. "Do administrators respond to their accountability ratings? The response of school budgets to accountability grades," Economics of Education Review, Elsevier, vol. 49(C), pages 55-68.
    • Handle: RePEc:eee:ecoedu:v:49:y:2015:i:c:p:55-68
    DOI: 10.1016/j.econedurev.2015.07.005
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    2. Jacobus Cilliers & Isaac M. Mbiti & Andrew Zeitlin, 2021. "Can Public Rankings Improve School Performance?: Evidence from a Nationwide Reform in Tanzania," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 655-685.
    3. Machado, Anaely & Terra, Rafael & Tannuri-Pianto, Maria, 2024. "Higher education responses to accountability," Economics of Education Review, Elsevier, vol. 98(C).
    4. Burgess, Simon, 2016. "Human Capital and Education: The State of the Art in the Economics of Education," IZA Discussion Papers 9885, Institute of Labor Economics (IZA).
    5. 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.

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    Keywords

    Accountability; School finance;

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