American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Incentives and the Supply of Effective Charter Schools
American Economic Review
vol. 109,
no. 7, July 2019
(pp. 2568–2612)
(Complimentary)
Abstract
Charter school funding is typically set by formulas that provide the same amount for students regardless of advantage or need. I present evidence that this policy skews the distribution of students served by charters toward low-cost populations by influencing where charter schools open and whether they survive. To do this, I develop and estimate an equilibrium model of charter school supply and competition to evaluate the effects of funding policies that aim to correct these incentives. The results indicate that a cost-adjusted funding formula would increase the share of disadvantaged students in charter schools with little reduction in aggregate effectiveness.Citation
Singleton, John D. 2019. "Incentives and the Supply of Effective Charter Schools." American Economic Review, 109 (7): 2568–2612. DOI: 10.1257/aer.20171484Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I22 Educational Finance; Financial Aid
- I28 Education: Government Policy