Competition and the Level of Expenditures: K Through 12 Public Schools in Michigan

Abstract

This study investigates the effect of private school competition on per-pupil expenditure levels in 271 Michigan public school districts. A single equation estimation procedure is used to capture the effects of private school competition, wealth, ability to pay and state aid on per-pupil expenditure levels across school districts. Results indicate the effect of private school competition is small but statistically significant. (H70, 121)