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Accountability and yardstick competition in the public provision of education

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  • Terra, Rafael
  • Mattos, Enlinson

Abstract

This paper explores the institutional change introduced by the public disclosure of an education development index (IDEB, Basic Education Development Index) in 2007 to identify the effect of education accountability on yardstick competition in educational spending among Brazilian municipalities. An exploratory analysis of the data shows a minor reduction (20%) in spatial interaction in public educational spending after IDEB disclosure—compared with the spatial correlation before disclosure of the index. Our main results explore a discontinuity around the cutoff of 30 students enrolled in the grade under assessment after IDEB disclosure. The estimates suggest that the spatial autocorrelation—and, thus, yardstick competition—is reduced by 52%. Falsification and robustness tests were performed and suggest that we can claim causality around small bandwidths of the cutoff. This finding suggests that the public release of information may decrease the importance of neighbors’ information on voters’ decisions.

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  • Terra, Rafael & Mattos, Enlinson, 2017. "Accountability and yardstick competition in the public provision of education," Journal of Urban Economics, Elsevier, vol. 99(C), pages 15-30.
  • Handle: RePEc:eee:juecon:v:99:y:2017:i:c:p:15-30
    DOI: 10.1016/j.jue.2016.12.001
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    Cited by:

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    2. Sebastian Blesse & Philipp Lergetporer & Justus Nover & Katharina Werner, 2023. "Transparency and Policy Competition: Experimental Evidence from German Citizens and Politicians," Munich Papers in Political Economy 27, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    3. Tanzhe Tang & Ke Zeng, 2018. "Evolution of Government’s Performance Through Yardstick Competition in the Spatial Game of Gubernatorial Elections," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 21(2), pages 1-7.
    4. Ferraresi, Massimiliano, 2023. "JUE Insight: Immigrants, social transfers for education, and spatial interactions," Journal of Urban Economics, Elsevier, vol. 136(C).
    5. Bonev, Petyo & Glachant, Matthieu & Söderberg, Magnus, 2022. "Implicit yardstick competition between heating monopolies in urban areas: Theory and evidence from Sweden," Energy Economics, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Education spending; Yardstick competition; Electoral and educational accountability;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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