Good Principals or Good Peers ? Parental Valuation of School Characteristics , Tiebout Equilibrium , and the Incentive Effects of Competition among Jurisdictions

@inproceedings{Rothstein2002GoodPO,
  title={Good Principals or Good Peers ? Parental Valuation of School Characteristics , Tiebout Equilibrium , and the Incentive Effects of Competition among Jurisdictions},
  author={Jesse M. Rothstein},
  year={2002}
}
School choice policies aim to improve school productivity by rewarding administrators of schools that parents choose. These policies may not create incentives for effective administration, however, if parents prefer schools with desirable peer groups to those with inferior peers but better policies and instruction. I develop a model of the “Tiebout choice” residential housing market in which schools differ in both peer group and effectiveness. If parental preferences depend primarily on school… CONTINUE READING
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