We exploit differences in state special education funding systems based on special education enrollment ('bounty systems') or on total student enrollment ('census systems') to assess whether funding systems impact teacher turnover, teacher specialty, special education enrollment, state education spending, average class sizes, and teacher effort.…

This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in…

The present paper studies the general equilibrium implications of two types of education policy in an overlapping generations model. We examine education transfers, which augment inherited private education spending, and public investment on economy-wide human capital, which provides externalities to individual human capital accumulation. The…

While there is a wealth of research on school finance equity and adequacy, and school finance theory clearly documents differences between the two concepts, no study has examined whether the reforms engendered by each approach actually differ in terms of resource distribution. The present study examines the issues using district-level data on…

Failure to achieve equitable access to university studies has contributed to turning the focus to the funding of higher education systems. This paper aims to review critically the literature assessing the effectiveness of existing financing schemes and changes in them as a means for reducing the prevalent under-representation of students from a…

The present paper starts by discussing the principles of public funding of universities. The size of the social returns to investment in education gives an indication regarding the most efficient use of resources, while the difference between the private and the social rates relates to issues of equity. The available evidence is contrasted to…

A considerable sum of money is allocated to UK universities on the basis of Research Assessment Exercise performance. In this paper we analyse the impact of the two main funding models on the intra-territorial and intra-regional allocation of funds. We also examine the effect of the present system of territorial safety nets and discuss the impact…

The present paper tackles the issue of the higher education funding system in Slovenia. Its main attribute is that institutions are classified into study groups according to their fields of education, and funds granted by the state are based on their weights or study group factors (SGF). Analysis conducted using data envelopment analysis tested…

Direct provision of public services can alter the balance of resources across income groups. We focus on the issues arising when taking account of the impact of publicly provided education services across the income distribution. We combine OECD information on spending per student in particular levels of the education system with micro data from…

The institutional framework for the funding of higher education in the United Kingdom is discussed. In England, much of the financial support for teaching and learning, especially of "home and European Union" undergraduates, is channelled through the Higher Education Funding Council for England (HEFCE). The HEFCE operates a formula…

Demographic change in industrial countries will influence educational spending in potentially two ways. On the one hand, the decline in the number of school-age children should alleviate the financial pressure. On the other hand, the theoretical/empirical literature has established that the concomitantly increasing proportion of elderly in the…

Describes and evaluates further education's new funding methodology, introduced in 1993 by Britain's Further Education Funding Council when it took control of the higher education sector from local authorities. The methodology provides colleges with incentives to expand and lower unit costs and tries to reduce funding inequities among colleges.…

Recently, monies allocated to the additional educational needs (AEN) component of (Britain's) standard spending assessment (SSA) have decreased markedly. The strategy for determining the AEN weighting (to aid socially deprived and ethnic-minority students) is undermined by central-government spending constraints. Weighting should be determined by…