Business Faculty Publications

Title

States and School Finance

Document Type

Article

Publication Date

6-2020

Publication Title

Regional Science Policy & Practice

Keywords

hybrid tiebout model, income taxes, property taxes, school funding

Disciplines

Business | Economics | Public Economics | Regional Economics

Abstract

In the US, the share of school district revenues that state and local governments provide for K-12 has changed significantly over the last century. Historically, K-12 education was highly decentralized and funded largely by property taxes of local governments. States played only a supporting role. Today, states, which obtain the biggest portion of tax revenues from income and sales taxes, play a large and increasing role in school funding. This paper uses a hybrid Tiebout model to analyze the impact of the education finance policy change in a general equilibrium framework.

DOI

https://doi.org/10.1111/rsp3.12221

Volume

12

Issue

3

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