Consolidation has dramatically reduced the number of school districts in the United States. Using data from rural school districts in New York, this article provides the first direct estimation of consolidation's cost impacts. We find economies of size in operating spending: all else equal, doubling enrollment cuts operating costs per pupil by…

Presents results of a detailed study of potential cost savings from consolidation of New York school districts. Develops a theoretical framework that distinguishes several economy-of-scale dimensions and defines an empirical cost function for schooling. Results indicate substantial cost savings from consolidating districts with fewer than 500…

Considerable interest in consolidation or reorganization of school districts derives from the perception that consolidation produces significant cost savings due to scale economies in the provision of education. This paper examines potential cost savings from consolidation of New York school districts--an initiative actively encouraged by the…