Working from the basic assumption that the primary motivation for those involved in school governance is self-interest, this paper develops and discusses 15 hypotheses that form the essential elements of an economic theory of school governance. The paper opens with a review of previous theories of governance and their origins in social science theory, then discusses the application of economic theory to social questions. The paper then develops its 15 specific hypotheses in six broad areas: (1) the motivation of school board candidates; (2) the campaign costs acceptable to candidates motivated by power or prestige; (3) the relative activity and interest levels of "power" candidates; (4) the reliance of board members on information providers outside the board, including the superintendent; (5) the relationships between board members' motivation and their interest in reducing conflict; and (6) the effects of voter distribution on conflict. (PGD)