This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in…

The present paper studies the general equilibrium implications of two types of education policy in an overlapping generations model. We examine education transfers, which augment inherited private education spending, and public investment on economy-wide human capital, which provides externalities to individual human capital accumulation. The…

While there is a wealth of research on school finance equity and adequacy, and school finance theory clearly documents differences between the two concepts, no study has examined whether the reforms engendered by each approach actually differ in terms of resource distribution. The present study examines the issues using district-level data on…

A considerable sum of money is allocated to UK universities on the basis of Research Assessment Exercise performance. In this paper we analyse the impact of the two main funding models on the intra-territorial and intra-regional allocation of funds. We also examine the effect of the present system of territorial safety nets and discuss the impact…

Direct provision of public services can alter the balance of resources across income groups. We focus on the issues arising when taking account of the impact of publicly provided education services across the income distribution. We combine OECD information on spending per student in particular levels of the education system with micro data from…

Recently, monies allocated to the additional educational needs (AEN) component of (Britain's) standard spending assessment (SSA) have decreased markedly. The strategy for determining the AEN weighting (to aid socially deprived and ethnic-minority students) is undermined by central-government spending constraints. Weighting should be determined by…