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The influence of financing on results in the pre-university education system

Author

Listed:
  • Gabriella Szekeres (Vancza)

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • Alina Căldăraru

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Expenditure on the education system plays a significant role in the economy of the public system. In the accounting of educational institutions, special emphasis is placed on the budgeting process, in which the revenues and expenditures of the entities are found. Despite a large amount of research, specialists do not agree on the role the level of funding plays in the education system and its effect on the results of the final beneficiaries of the system. In this research we tried to observe how the level of funding or average costs per pupil in European education systems influences the results of students in standardized tests. Making an estimate with the help of the linear regression model by the method of the least squares of the correlation between these two variables, we found that there was a positive correlation between them; not exceptionally strong but not negligible either.

Suggested Citation

  • Gabriella Szekeres (Vancza) & Alina Căldăraru, 2021. "The influence of financing on results in the pre-university education system," Journal of Financial Studies, Institute of Financial Studies, vol. 10(6), pages 136-151, May.
    • Handle: RePEc:fst:rfsisf:v:10:y:2021:i:6:p:136-151
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    References listed on IDEAS

    as
    1. 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).
    2. 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.
    3. Hong, Kai & Zimmer, Ron, 2016. "Does Investing in School Capital Infrastructure Improve Student Achievement?," Economics of Education Review, Elsevier, vol. 53(C), pages 143-158.
    4. Joshua Hyman, 2017. "Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 256-280, November.
    5. Papke, Leslie E., 2005. "The effects of spending on test pass rates: evidence from Michigan," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 821-839, June.
    6. Paco Martorel & Kevin Stange & Isaac McFarlin Jr., 2016. "Investing in Schools: Capital Spending, Facility Conditions, and Student Achievement (Revised and Edited)," Upjohn Working Papers 16-256, W.E. Upjohn Institute for Employment Research.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public expenditures; public accounting; funding for the education system; costs per student; PISA test;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • P44 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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