Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts

54 Pages Posted: 5 May 2001 Last revised: 21 Oct 2010

See all articles by Jonathan Guryan

Jonathan Guryan

Northwestern University - Human Development and Social Policy (HDSP) Program; National Bureau of Economic Research (NBER)

Date Written: May 2001

Abstract

The paper studies a typical state-level education finance equalization scheme, and considers two questions. First, what fraction of state education aid is spent on schools? And second, does increased educational funding for historically low-spending districts lead to improved student achievement? Estimates based on variation in spending caused by state aid formulas suggest that 50 to 75 cents of each dollar of education aid were spent on schools. Estimates also suggest that increased spending improved 4 th -grade test scores, but show no effect on 8 th -grade test scores. Further analysis shows that increases in 4 th -grade average test scores were associated with improved performance by low-scoring students.

Suggested Citation

Guryan, Jonathan, Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts (May 2001). NBER Working Paper No. w8269, Available at SSRN: https://ssrn.com/abstract=268878

Jonathan Guryan (Contact Author)

Northwestern University - Human Development and Social Policy (HDSP) Program ( email )

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Evanston, IL 60208
United States

National Bureau of Economic Research (NBER)

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