Journal
EDUCATION FINANCE AND POLICY
Volume 14, Issue 1, Pages 31-60Publisher
MIT PRESS
DOI: 10.1162/edfp_a_00236
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Funding
- Institute for Educational Sciences [R305B090016]
- National Academy of Education
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We provide new evidence about the effect of court-ordered finance reforms that took place between 1989 and 2010 on per-pupil revenues and graduation rates. We account for heterogeneity in the treated and counterfactual groups to estimate the effect of overturning a state's finance system. Seven years after reform, the highest poverty quartile in a treated state experienced an 11.5 percent to 12.1 percent increase in per-pupil spending, and a 6.8 to 11.5 percentage point increase in graduation rates. We subject the model to various sensitivity tests, which provide upper and lower bounds on the estimates. Estimates range, in most cases, from 6 to 12 percentage points for graduation rates.
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