A Neighborly Welcome?: Charter School Entrance and Public School Competition on the Capital Margin

29 Pages Posted: 31 Aug 2016

See all articles by Michael Kofoed

Michael Kofoed

United States Military Academy

Christopher Fawson

Utah State University - College of Business - Department of Economics

Date Written: August 30, 2016

Abstract

In 1999, the Utah State Legislature allowed charter schools to enter and be administered under the broad oversight of school districts. The structure of the Utah Charter School provides a natural experiment to study a unique way that traditional public schools compete against new charter schools. Using data from the 1992-2012 waves of the Common Core of Data, we estimated fixed effect models to measure the increase in capital expenditures by traditional public schools when faced with competition by new charter schools. We find that total capital outlay and spending on improving existing structures increases with charter competition, but new construction and instructional spending does not increase at a statistically significant level. We also conduct a placebo experiment that strengthens our empirical findings.

Keywords: Charter Schools, Education Market, Capital Facility Investment

JEL Classification: I22, I28

Suggested Citation

Kofoed, Michael and Fawson, Chris, A Neighborly Welcome?: Charter School Entrance and Public School Competition on the Capital Margin (August 30, 2016). Available at SSRN: https://ssrn.com/abstract=2832373 or http://dx.doi.org/10.2139/ssrn.2832373

Michael Kofoed (Contact Author)

United States Military Academy ( email )

600 Thayer Rd
West Point, NY 10996
United States
801-540-8789 (Phone)

HOME PAGE: http://https://sites.google.com/site/michaelkofoed1

Chris Fawson

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

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