Bulletin n. 0/2004 | ||
December 2004 | ||
Gordon Nora |
||
Do federal grants boost school spending? Evidence from Title I | ||
in Journal of Public Economics , Volume 88, Issues 9-10 , 2004 , 1771-1792 | ||
One of the federal government's main elementary and secondary education programs is Title I, which allocates money for compensatory education to school districts based on child poverty. I use sharp changes in per-pupil grant amounts surrounding the release of decennial census data to identify effects of Title I on state and local education revenue, and how much the program ultimately increases spending by recipient school districts. I find that state and local revenue efforts initially are unaffected by Title I changes, but that local governments substantially and significantly crowd out changes in Title I within in a 3-year period. | ||