Entry into the Schooling Market: How is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?

31 Pages Posted: 29 Dec 2002

See all articles by Thomas A. Downes

Thomas A. Downes

Tufts University - Department of Economics

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit; National Bureau of Economic Research (NBER)

Abstract

This research examines the location choice of private schools entering the California schooling market in 1979-80. We find that entrants are more likely to locate in public school districts with lower levels of per-pupil expenditure and higher fractions of public school students who reside in low-income households. In addition, we provide evidence of differences in the responsiveness of different types of private schools to the underlying conditions. Also, in comparing our results to those of previous research, we find that the determinants of the location choices of entrants appear to be the same as the determinants of the location pattern of incumbent private schools.

Suggested Citation

Downes, Thomas A. and Greenstein, Shane M., Entry into the Schooling Market: How is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?. Bulletin of Economic Research, Vol. 54, pp. 341-371, 2002. Available at SSRN: https://ssrn.com/abstract=330006

Thomas A. Downes (Contact Author)

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-628-5000 ext. 2687 (Phone)
617-627-3917 (Fax)

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit ( email )

Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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