Public and Private School Competition: The Spatial Education Production Function

40 Pages Posted: 12 May 2005

See all articles by David M. Brasington

David M. Brasington

University of Cincinnati - Department of Economics

Date Written: May 2, 2005

Abstract

School vouchers may increase the competition public school districts face. Greater competition may spur public schools to improve student outcomes, which reliably predict labor market productivity and earnings. Previous school competition studies do not use spatial statistics; they fail to incorporate spillovers and the effect of omitted variables into their education production functions. Significant spatial effects are found in all regressions, and spatial statistics improves adjusted R-squared. There seems to be no consistent association between private school attendance rates and public school achievement, or between the number of public school districts in a county and public school performance. Competitive effects, which seem plausible in non-spatial regressions, dissipate when spatial statistics is used. When school inputs appeared statistically significant in non-spatial regressions, the spatial regressions generally made the significance disappear. Poverty appeared to depress reading and writing passage rates, but this effect disappeared in the spatial models.

Keywords: Spillovers, human capital formation, spatial statistics, school vouchers, private and public school competition

JEL Classification: J24, I21, H40, D62

Suggested Citation

Brasington, David M., Public and Private School Competition: The Spatial Education Production Function (May 2, 2005). Available at SSRN: https://ssrn.com/abstract=719821 or http://dx.doi.org/10.2139/ssrn.719821

David M. Brasington (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

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