THE STUDY DEALT WITH THE BENEFITS FROM PUBLIC EDUCATION TO PEOPLE OTHER THAN STUDENTS AND THEIR PARENTS. THE INVESTIGATION WAS A THEORETICAL ANALYSIS OF THE ECONOMICS OF PUBLIC EDUCATION. THE SCOPE OF THE STUDY INCLUDED (1) METHODOLOGICAL AND CONCEPTUAL ISSUES, (2) SOCIAL BENEFITS FROM PUBLIC EDUCATION, AND (3) PARTICULAR BENEFITS AND THEIR EXTERNAL COMPONENTS. CLAYTON, MISSOURI, WAS USED AS THE COMMUNITY TO WHICH A MULTIPLE REGRESSION MODEL OF THE DETERMINANTS OF EDUCATION EXPENDITURES WAS APPLIED. THIS MODEL DEMONSTRATED THAT EXPENDITURES PER STUDENT ARE NEGATIVELY CORRELATED WITH THE DEGREE OF SPILLOVER. THE RESEARCHERS FOUND THAT THE EFFECTS OF LOCAL DECISIONS CONCERNED WITH PUBLIC PRIMARY AND SECONDARY EDUCATION PERMEATE THE ENTIRE SOCIETY. FINDINGS HAVE ALSO SUGGESTED THAT ANALYSIS OF THE NATURE, MAGNITUDE, AND DISTRIBUTION OF BENEFITS FROM PUBLIC EDUCATION MAY PROVIDE AN EXPLANATION FOR A VARIETY OF ASPECTS OF PUBLIC BEHAVIOR INVOLVING EDUCATION. (WB)