American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
School Spending and Student Outcomes: Evidence from Revenue Limit Elections in Wisconsin
American Economic Journal: Economic Policy
vol. 14,
no. 1, February 2022
(pp. 1–39)
(Complimentary)
Abstract
This study examines the impacts of two distinct types of school spending on student outcomes. State-imposed revenue limits cap the total amount of revenue that a school district in Wisconsin can raise unless the district holds a referendum asking voters to exceed the cap. Importantly, Wisconsin law requires districts to hold separate referenda for operational and capital expenditures, which allows for estimating their independent effects. Leveraging close elections in a dynamic regression discontinuity framework, I find that increases in operational spending have substantial positive effects on test scores, dropout rates, and postsecondary enrollment, but additional capital expenditures have little impact.Citation
Baron, E Jason. 2022. "School Spending and Student Outcomes: Evidence from Revenue Limit Elections in Wisconsin." American Economic Journal: Economic Policy 14 (1): 1–39. DOI: 10.1257/pol.20200226Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I22 Educational Finance; Financial Aid
- I28 Education: Government Policy