In this paper, I develop an empirical framework for the analysis
of large-scale policies, and apply it to study the effects of school
finance reform on the Detroit metropolitan area. Exploiting school
finance reform in Michigan in 1994, I estimate a general equilibrium
model of multiple jurisdictions with 1990 data from Detroit, predict
the 2000 equilibrium, and compare this prediction with 2000 data to
validate the model. I conduct counterfactual simulations using the
estimates. According to my analysis, feasible revenue-based reforms
that ensure spending equity or adequacy have little impact on school
quality or household demographics in Detroit. (JEL H75, I22)
Ferreyra, Maria Marta.
"An Empirical Framework for Large-Scale Policy Analysis, with an Application to School Finance Reform in Michigan."
American Economic Journal: Economic Policy,
State and Local Government: Health, Education, and Welfare