Uses panel data on 1982 to 1996 state appropriations to examine the sensitivity of results from the legislative-demand model to changes in statistical methodology employed. Signs and significant levels of variables used in this model vary widely when least-squares and fixed-effects methods are used. Expected relationships between state…

The states exhibit policy variations affecting school districts' local environment. This paper develops a theoretical model demonstrating that bias induced by omitting relevant state characteristics is greater in state-level analyses than in less aggregate studies. Aggregation to the state level inflates the coefficients on school input variables.…

Explores whether observed levels of educational attainment and expenditure per student are endogenously determined by schools' optimizing behavior in resource-allocation decisions, considering both supply- and demand-side factors. This process can generate patterns of expenditure per student in line with empirical findings. Difficulties with…