To facilitate communication between economists and other professionals involved in school finance analysis and policy-making, this study proposes a common vocabulary, describes a set of basic concepts, and explains the application of the more useful tools of economic analysis to school finance problems. The first of the report's two parts presents…

The desire to create an effective cost of education index (CEI) arises from a desire to achieve greater equity in state and federal school funding mechanisms. Before such a measure is useful, however, much more thought must be given to the specification of factors differentially affecting demand and supply. Consensus regarding classification of…