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Centralization, Fiscal Federalism, and Private School Attendance*
Author(s) -
Nechyba Thomas J.
Publication year - 2003
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.t01-1-00066
Subject(s) - attendance , private school , economics , speculation , quality (philosophy) , business , public economics , finance , demographic economics , economic growth , philosophy , epistemology
A CGE model is used to analyze the impact of public school financing on private school attendance. The common perception that public school finance centralization will necessarily lead to greater private school attendance is not correct in such a model—even when that centralization involves an extreme equalization as in California. Furthermore, if centralization is less dramatic (as in most states), declines in private school attendance are even more pronounced. This weakens the speculation that low exit rates to private schools in centralizing states imply that general public school quality does not drop as a result of such centralization.