Public sector decentralization and school performance: International evidence

Falch, Torberg and Fischer, Justina AV (2010): Public sector decentralization and school performance: International evidence.

Abstract

Using a panel of international student test scores 1980 – 2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fiscal decentralization; Student achievement; federalism; PISA; TIMSS; education; school quality
• Subjects: H - Public Economics > H4 - Publicly Provided Goods > H40 - General; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I20 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models

References

Barankay, I. and B. Lockwood, 2007, Decentralization and the productive efficiency of government: Evidence from Swiss cantons, Journal of Public Economics 91, 1197-1218.

Bjørnskov, C., A. Dreher, and J.A.V. Fischer, 2008, On Decentralization and Life Satisfaction, Economics Letters 99, 147–151.

Clark, D., 2009, The performance and competitive effects of school autonomy, Journal of Political Economy 117, 745-783.

Dreher, A. and J.A.V. Fischer, 2010, Government decentralization as a disincentive for transnational terror? An empirical test, International Economic Review, 2010, forthcoming.

Falch, T., and J.A.V. Fischer, 2008a, Does a Generous Welfare State Crowd out Student Achievement? Panel Data Evidence from International Student Tests, CESifo Working Paper 2383.

Falch, T., and J.A.V. Fischer, 2008b, Public sector decentralization and school performance: International evidence. TWI Research Paper Series 39, University of Konstanz.

Fischer, J.A.V., 2005, Do Institutions of Direct Democracy Tame the Leviathan? Swiss Evidence on the Structure of Expenditure for Public Education, CESifo Working Paper Series, CESifo Working Paper No. 1628.

Galiani, S., and E. Schargrodsky, 2002, Evaluating the Impact of School Decentralization on Educational Quality, Economía LACEA 2, no. 2:275-314.

Hanushek, E.A., and D.D. Kimko, 2000, Schooling, labor-force quality, and the growth of nations. American Economic Review 90, 1184-1208.

Hoxby, C., 1999, The productivity of schools and other local public goods producers. Journal of Public Economics, 74, 1-30.

Hoxby, C. M., and J. E. Rockoff, 2004, The impact of charter schools on student achievement. (mimeo), November.

Keman, H., 2000, Federalism and policy performance. A conceptual and empirical inquiry, in: U. Wachendorfer-Schmidt (Ed.), Federalism and political performance (Routledge, London)

Merrouche, O., 2007, The Long Term Effect of Education Spending Decentralization on Human Capital in Spain, Working Paper Series Uppsala University, Department of Economics, 2007:3.

Naper, L. R., 2010, Teacher hiring practice and educational efficiency, Economics of Education Review, forthcoming.

Oates, W.E., 1972, Fiscal Federalism. (Harcourt Brace Jovanovich, New York).

Seabright, P., 1996, Accountability and decentralisation in governments: An incomplete contracts model. European Economic Review 40, 61-89.

Treisman, D., 2000, Decentralization and the quality of government, Working paper, Department of Political Science, University of California, Los Angeles.

Wößmann, L., 2003, Schooling Resources, Educational Institutions and Student Performance: The International Evidence, Oxford Bulletin of Economics and Statistics 65, 117-170.