Quantifying the Supply Response of Private Schools to Public Policies | Zendy

Michael Dinerstein | Zendy; Troy D. Smith | Zendy

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Quantifying the Supply Response of Private Schools to Public Policies

Author(s) -

Michael Dinerstein,

Troy D. Smith

Publication year - 2021

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.20151723

Subject(s) - private school , context (archaeology) , economics , school choice , supply and demand , private education , private sector , public economics , demographic economics , economic growth , higher education , market economy , microeconomics , paleontology , biology

School policies that cause a large demand shift between public and private schooling may cause some private schools to enter or exit the market. We study how the policy effects differ under a fixed versus changing market structure in the context of a public school funding reform in New York City. We find evidence of a reduction in private schools in response to the reform. Using a model of demand for and supply of private schooling, we estimate that 20 percent of the reform’s effect on school enrollments came from increased private school exit and reduced private school entry. (JEL H75, I21, I22, I28)

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