Measuring the incidence of public spending in education requires an intergenerational framework distinguishing between what current and future generations--that is, parents and children--give and receive. In standard distributional incidence analysis, households are assumed to receive a benefit equal to what is spent on their children enrolled in…

We develop a simple model of teacher behavior that offers a solution to the ''class size puzzle'' and is useful for analyzing the potential effects of the No Child Left Behind Act. When teachers must allocate limited classroom time between multiple instructional methods, rational teachers may respond to reductions in class size by reallocating…