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A new model for equitable and efficient resource allocation to schools: the Israeli case

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  • Iris BenDavid-Hadar
  • Adrian Ziderman

Abstract

This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper: Improvement in the Educational Achievement Distribution. The development of the budget allocation formula is demonstrated utilizing Israeli data. Large-scale, nationwide datasets relating students’ academic achievement to student background variables, teacher profiles, and school characteristics were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.

Suggested Citation

  • Iris BenDavid-Hadar & Adrian Ziderman, 2011. "A new model for equitable and efficient resource allocation to schools: the Israeli case," Education Economics, Taylor & Francis Journals, vol. 19(4), pages 341-362, March.
    • Handle: RePEc:taf:edecon:v:19:y:2011:i:4:p:341-362
    DOI: 10.1080/09645291003726467
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    References listed on IDEAS

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    1. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    2. Noam Zussman & Shay Tsur, 2008. "The Effect of Students' Socioeconomic Background on Their Achievements in Matriculation Examinations," Bank of Israel Working Papers 2008.11, Bank of Israel.
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    Cited by:

    1. Johnes, Jill, 2015. "Operational Research in education," European Journal of Operational Research, Elsevier, vol. 243(3), pages 683-696.
    2. Dimitrov, Nedialko B. & Dimitrov, Stanko & Chukova, Stefanka, 2014. "Robust decomposable Markov decision processes motivated by allocating school budgets," European Journal of Operational Research, Elsevier, vol. 239(1), pages 199-213.

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