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Educational Cost Differentials and the Allocation of State Aid for Elementary/Secondary Education

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  • Jay G. Chambers

Abstract

The cost of obtaining education inputs generally will vary among school districts in a state. Educators and state legislators increasingly are concerned over whether and how to compensate school districts for variations in education costs. This paper reports on some empirical estimates of differences in the costs of teachers', administrators', and transportation services across school districts within the State of Missouri. Based on these estimates, an overall cost-of-education index is computed, the patterns of cost variation are examined, and the impact of state aid allocations is determined. In addition some conclusions are drawn regarding the stability of the index over time and various other aspects related to the implementation of a cost index as part of school finance policy.

Suggested Citation

  • Jay G. Chambers, 1978. "Educational Cost Differentials and the Allocation of State Aid for Elementary/Secondary Education," Journal of Human Resources, University of Wisconsin Press, vol. 13(4), pages 459-481.
    • Handle: RePEc:uwp:jhriss:v:13:y:1978:i:4:p:459-481
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    Cited by:

    1. Cyril F. Chang, 1981. "Different Forms of Outside Aid: a Collective-Choice Model for Predicting Effects On Local Educational Expenditure," Public Finance Review, , vol. 9(3), pages 321-341, July.
    2. Scorsone, Eric, 2007. "School District and Municipal Reorganization: Research Findings & Policy Proposals," Staff Paper Series 6543, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Downes, Thomas A. & Pogue, Thomas F., 1994. "Adjusting School Aid Formulas for the Higher Cost of Educating Disadvantaged Students," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 89-110, March.
    4. Duncombe, William & Yinger, John, 2000. "Financing higher student performance standards: the case of New York State," Economics of Education Review, Elsevier, vol. 19(4), pages 363-386, October.
    5. Natalia Nikolaevna Natocheeva* & Yuri Alexandrovich Rovensky & Yuri Yuryevich Rusanov & Tatiana Viktorovna Belyanchikova & Anna Anatolevna Staurskaya, 2018. "Optimizing Variability of Approaches to Regulatory Financing of Higher Education Services," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 221-227:3.
    6. K. Chakraborty & B. Biswas & WC. Lewis, 2000. "Economies of scale in public education: an econometric analysis," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 238-247, April.
    7. Robert Berne & Leanna Stiefel, 1993. "Cutback budgeting: The long-term consequences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(4), pages 664-684.
    8. Juan Luis Gómez-Reino & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2021. "Evidence on Economies of Scale in Local Public Service Provision: A Meta-Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2116, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    9. repec:eee:labchp:v:1:y:1986:i:c:p:641-692 is not listed on IDEAS
    10. Reschovsky, Andrew, 1994. "Fiscal Equalization and School Finance," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 185-197, March.
    11. Downes, Thomas A. & Pogue, Thomas F., 1994. "Adjusting School Aid Formulas for the Higher Cost of Educating Disadvantaged Students," National Tax Journal, National Tax Association, vol. 47(1), pages 89-110, March.
    12. Reschovsky, Andrew, 1994. "Fiscal Equalization and School Finance," National Tax Journal, National Tax Association, vol. 47(1), pages 185-97, March.
    13. Goldhaber, Dan & Destler, Katharine & Player, Daniel, 2010. "Teacher labor markets and the perils of using hedonics to estimate compensating differentials in the public sector," Economics of Education Review, Elsevier, vol. 29(1), pages 1-17, February.

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