NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Determinants of Public Education Expenditures: Evidence from the States, 1950-1990

Raquel Fernandez, Richard Rogerson

NBER Working Paper No. 5995*
Issued in April 1997
NBER Program(s):   PE

We examine a panel data set for the US states over the period 1950-1990 and use it to assess the effects of growth in personal income and number of students on expenditure on public primary and secondary education. Our analysis suggests that the share of personal income devoted to education is roughly constant, implying that per student education expenditures grow at roughly the same rate as personal income per student. We also find evidence that additional factors accounted for an increase in education expenditures over the period 1950-1970.

*Published: Fernandez, Raquel and Richard Rogerson. "Public Education And Income Distribution: A Dynamic Quantitative Evaluation Of Education-finance Reform," American Economic Review, 1998, v88(4,Sep), 813-833.

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