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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
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dc.contributor.authorBaicker, Katherineen_US
dc.contributor.authorGordon, Noraen_US
dc.date.accessioned2009-01-28T15:53:45Z-
dc.date.available2009-01-28T15:53:45Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/18913-
dc.description.abstractMany states are under court-order to reduce local disparities in education spending. While a substantial body of literature suggests that these orders and the resulting school finance equalizations have increased the level and progressivity of state education spending, there is little evidence on the broader effects of such measures on the change in total resources available not only for schools, but for other local government programs as well. When states spend more on education, both state and local budget constraints change. We find that while mandated school finance equalizations increase both the level and progressivity of state spending on education, states finance the required increase in education spending in part by reducing their aid to localities for other programs. Local governments, in turn, respond to the increases in state taxation and spending by reducing both their own revenue-raising and their own spending on education and on other programs. Thus, while state education aid does increase total spending on education, it does so at the expense of drawing resources away from spending on programs like public welfare, highways, and hospitals. These findings provide insight into the effectiveness of using earmarked funds to achieve redistribution.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1275en_US
dc.subject.jelI22en_US
dc.subject.jelH72en_US
dc.subject.jelH52en_US
dc.subject.ddc330en_US
dc.subject.keywordschool finance equalizationen_US
dc.subject.keywordstate and local public financeen_US
dc.subject.stwÖffentliche Bildungsausgabenen_US
dc.subject.stwSchulfinanzierungen_US
dc.subject.stwLänderfinanzenen_US
dc.subject.stwVereinigte Staatenen_US
dc.titleThe effect of mandated state education spending on total local resourcesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn395907047en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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