In this article, the authors present the results of a research study in which they used two national datasets to construct and examine a model that estimates relative faculty instructional costs for specific undergraduate degree programs and also identifies differences in these costs by region and institutional type. They conducted this research…

Except under specific conditions, adjusting state school finance plans to compensate for differences in the salaries paid to teachers has the potential for creating even greater inequities rather than for reducing existing inequities. (Author/IRT)

Discusses problems in establishing teacher cost indices on which to base adjustments in state educational aid. Presents 1973-1980 data on differentials in teacher salaries and revenue potentials among Florida school districts to show that salary differences between districts can change rapidly. (RW)

Presents a method for estimating a cross-sectional index of the cost of education. The index is based on a variant of the Cobb-Douglas function, which takes into account the process and the quality of the inputs used. (Author/IRT)

The effects of cost differences on equality of educational opportunity may be grossly overestimated. Until the equity of the distribution dimension of existing state plans has been determined, funding on the basis of cost differences has the potential for contributing to greater inequities. (Author/IRT)

Outlines a model to aid in the empirical estimation and interpretation of the patterns of variation in school personnel salaries across school districts and shows how this analysis could be used to develop indexes of personnel costs. (Author/JM)