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Fiscal and education spillovers from charter school expansion

Ridley, Matthew and Terrier, Camille (2018) Fiscal and education spillovers from charter school expansion. CEP Discussion Papers (CEPDP1577). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

The fiscal and educational consequences of charter expansion for non-charter students are central issues in the debate over charter schools. Do charter schools drain resources and high-achieving peers from non-charter schools? This paper answers these questions using an empirical strategy that exploits a 2011 reform that lifted caps on charter schools for underperforming districts in Massachusetts. We use complementary synthetic control instrumental variables (IV-SC) and differences-in-differences instrumental variables (IV-DiD) estimators. The results suggest greater charter attendance increases per-pupil expenditures in traditional public schools and induces them to shift expenditure from support services to instruction and salaries. At the same time, charter expansion has a small positive effect on non-charter students’ achievement.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2018 The Authors
Divisions: Centre for Economic Performance
Subjects: L Education > LB Theory and practice of education
JEL classification: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C10 - General
C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H39 - Other
I - Health, Education, and Welfare > I2 - Education > I22 - Educational Finance
I - Health, Education, and Welfare > I2 - Education > I28 - Government Policy
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 11 Jan 2019 12:22
Last Modified: 20 Feb 2019 04:09
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/91700

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