Competition in the public school sector: Evidence on strategic interaction among US school districts |
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Authors: | Johannes Rincke |
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Affiliation: | Centre for European Economic Research and Department of Economics, University of Mannheim, PO Box 103443, D-68034 Mannheim, Germany |
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Abstract: | This paper provides evidence on strategic interaction among local school districts. The analysis makes use of a significant change in the institutional environment for school districts in Michigan in 1996, when the state established a voluntary inter-district choice program. The school districts' participation decisions are modelled as discrete choice decisions using a spatial latent variable model. Strong effects are found saying that lagged adoptions of neighbors positively affect the current probability of participation. A simple test exploiting limitations of student mobility in inter-district transfers suggests that the driving force for interdependencies among adoption decisions was competition for students. |
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Keywords: | Strategic interaction School districts School choice Spatial probit |
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