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Does strategic interaction affect demand for school places? A conditional efficiency approach

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  • López-Torres, Laura
  • Nicolini, Rosella
  • Prior, Diego

Abstract

This paper provides evidence on strategic interaction among public schools. We adopt a two-stage estimation procedure to assess whether competition among public schools influences demand for places. A robust conditional order-m approach is used to estimate the efficiency of each school; a spatial econometric framework is then applied to disentangle the determinants of demand for the school when strategic interaction among parents is present. We detect the presence of positive spatial autocorrelation in the demand for public schools, but the magnitude of the spillover effects drops when neighboring school performance is added in. Our results confirm the existence of competitive pressures among public schools’ performance that we also infer from parents’ school choices.

Suggested Citation

  • López-Torres, Laura & Nicolini, Rosella & Prior, Diego, 2017. "Does strategic interaction affect demand for school places? A conditional efficiency approach," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 89-103.
    • Handle: RePEc:eee:regeco:v:65:y:2017:i:c:p:89-103
    DOI: 10.1016/j.regsciurbeco.2017.05.003
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    More about this item

    Keywords

    C14; C21; C61; C67; I21; Demand for schooling; Efficiency; Input-output analysis; School choice; Public schools; Spatial econometrics;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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