Quantifying the Supply Response of Private Schools to Public Policies
- (pp. 3376-3417)
AbstractSchool 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.
CitationDinerstein, Michael, and Troy D. Smith. 2021. "Quantifying the Supply Response of Private Schools to Public Policies." American Economic Review, 111 (10): 3376-3417. DOI: 10.1257/aer.20151723
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I22 Educational Finance; Financial Aid
- I28 Education: Government Policy