This article discusses the uses of production function models and describes the role of inferential statistics for making predictions in school finance. Specifically, the analysis evaluates types, suggests uses, explains the advantages and disadvantages, and lists the statistical complexities of production functions. (JAM)

Rectifies the unsatisfactory textbook treatment of the finite-sample proprieties of estimators of regression models with a lagged dependent variable and autocorrelated disturbances. Maintains that the bias of the ordinary least squares estimator is determined by the dynamic and correlation effects. (MJP)