ECON 151 Lecture Notes - Lecture 37: Caroline Hoxby, Longitudinal Study, Externality
22 Nov 2020
School
Department
Course
Professor
Document Summary
Performance of schools increase concludes that when you increase resources, it does have an impact on performance of students. After reforms, average achievement increased in q1, +0. 007 sd per years; After reforms, average achievement did not increase significantly in q5; +0. 08 sd per years difference betwen q1 and q5. States resources did not crowd out other resources (local or federal) resources went in class-size reduction, capital outlays (renovation) Musgrave-samuelson model - market unable to provide public good b/c will never satisfy people since ppl have different preferences/never be able to adjust public good to meet all needs. Some may want to reduce crime to 0 whatever the cost (tax) or the consequences (mass incarceration) 20% Some may be willing to accept some crime, providing that it does not happen too often 79% Some may value crime (criminals) 1% Public force is non-rival and non excludable. Therefore, no possibility to adjust public good to private preference.
