An Endogenous Model of Public School Expenditures and Private School Enrollment
28 Pages Posted: 13 Nov 1998
Date Written: September 1998
This paper examines the link between private school enrollment rates and public school expenditures. Using a panel of New York State school districts, models are estimated in which public school spending and private school enrollment rates are endogenously determined. The results indicate the presence of endogeneity. Increases in private school enrollment are not shown to cause decreases in public school per pupil expenditure; however, private school enrollment rates are found to respond to changes in public school expenditure and are sensitive to changes in tuition.
JEL Classification: I21, I22, I28
Suggested Citation: Suggested Citation