Public Education and Income Distribution: A Dynamic Quantitative Evaluation of Education-Finance Reform

Raquel Fernandez, Richard Rogerson

    Research output: Contribution to journalArticle

    Abstract

    Many states are implementing school-finance reforms which will have complex effects on income distribution, intergenerational income mobility, and welfare. This paper analyzes the static and dynamic effects of such reforms by constructing a dynamic general equilibrium model of public-education provision and calibrating it using U.S. data. We examine the consequences of a reform of a locally financed system to a state-financed system which equalizes expenditures per student across districts. We find that this policy increases both average income and the share of income spent on education. Steady-state welfare increases by 3.2 percent of steady-state income.

    Original languageEnglish (US)
    Pages (from-to)813-833
    Number of pages21
    JournalAmerican Economic Review
    Volume88
    Issue number4
    StatePublished - Sep 1998

    Fingerprint

    Public education
    Quantitative evaluation
    Education finance
    Income
    Income distribution
    Expenditure
    School finance
    Education
    Dynamic general equilibrium model
    Income mobility
    Dynamic effects

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Public Education and Income Distribution : A Dynamic Quantitative Evaluation of Education-Finance Reform. / Fernandez, Raquel; Rogerson, Richard.

    In: American Economic Review, Vol. 88, No. 4, 09.1998, p. 813-833.

    Research output: Contribution to journalArticle

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