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The Efficiency of Local School Finance

John S. Akin; Douglas J. YoungDay

The Review of Economics and Statistics 1976

The most prevalent arguments for increased state and federal aid to education are concerned with equity criteria. Relatively little has been written or discussed concerning the efficiency aspects of aid to education. This paper uses a median voter decision model and certain assumptions about the functional form of demand functions to obtain an estimate of the efficient level of expenditure for each of 104 school districts in New York State. The analysis highlights the price effects of state matching grants and of nonresidential property in a district.

DOI
10.2307/1924039
Volume
58 (2)
Pages
255
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