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Institutions, quality competition and public service provision: The case of public education

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  • Samuel Staley
  • John Blair

Abstract

This paper contributes to the literature on integovernmental competition in two ways. First, the institutional setting within which public services are delivered is analyzed with respect to the impact on the quality of services provided. Previous studies have measured competition only in terms of governmental structure, ignoring the issue of service quality and the potential for differentiating local governmental jurisdictions along quality dimensions. Second, the outcome of competition is defined in terms of service quality. Previous studies generally have measured the outcome of competition by examining the fiscal effects of fragmentation and accountability through service costs or tax revenue impacts. School districts were used to empirically test quality competition. Student academic performance was modeled as a function of control variables and the degree of competition from neighboring school districts. Academic performance in public schools was positively associated with the performance of neighboring districts, although the effect was small. These findings, however, suggest that strategies to strengthen interjurisdictional competition may be useful in enhancing public service quality. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Samuel Staley & John Blair, 1995. "Institutions, quality competition and public service provision: The case of public education," Constitutional Political Economy, Springer, vol. 6(1), pages 21-33, December.
  • Handle: RePEc:kap:copoec:v:6:y:1995:i:1:p:21-33
    DOI: 10.1007/BF01298374
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    References listed on IDEAS

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    1. Borland, Melvin V. & Howsen, Roy M, 1992. "Student academic achievement and the degree of market concentration in education," Economics of Education Review, Elsevier, vol. 11(1), pages 31-39, March.
    2. Robert A. Margo, 1991. "Segregated Schools and the Mobility Hypothesis: A Model of Local Government Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(1), pages 61-73.
    3. Michael Marlow, 1992. "Intergovernmental competition, voice and exit options and the design of fiscal structure," Constitutional Political Economy, Springer, vol. 3(1), pages 73-88, December.
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    5. Alice M. Rivlin, 1991. "Distinguished Lecture on Economics in Government: Strengthening the Economy by Rethinking the Role of Federal and State Governments," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 3-14, Spring.
    6. Kenny, Lawrence W, 1982. "A Model of Optimal Plant Size with an Application to the Demand for Cognitive Achievement and for School Size," Economic Inquiry, Western Economic Association International, vol. 20(2), pages 240-254, April.
    7. Wagner, Richard E & Weber, Warren E, 1975. "Competition, Monopoly, and the Organization of Government in Metropolitan Areas," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 661-684, December.
    8. Marlow, Michael L, 1991. "Privatization and Government Size," Public Choice, Springer, vol. 68(1-3), pages 273-276, January.
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    Cited by:

    1. Esteban Silva-Ochoa, 2009. "Institutions and the Provision of Local Services in Mexico," Environment and Planning C, , vol. 27(1), pages 141-158, February.
    2. Okuyama Naoko & Ishida Yu & Yamauchi Naoto, 2010. "Public Private Partnership between Local Governments and Nonprofits in Japan," Nonprofit Policy Forum, De Gruyter, vol. 1(1), pages 1-23, November.
    3. Joshua C. Hall & Justin M. Ross, 2010. "Tiebout Competition, Yardstick Competition, and Tax Instrument Choice: Evidence from Ohio School Districts," Public Finance Review, , vol. 38(6), pages 710-737, November.
    4. Dean Stansel, 2012. "Competition, knowledge, and local government," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 243-253, September.

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    More about this item

    Keywords

    H7; I12;

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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