Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education
In 2015, Michigan increased its Career and Technical Education (CTE) funding and changed its funding formula to reimburse programs-based student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.
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Copy CitationThomas Goldring, Brian Jacob, Daniel Kreisman, and Michael Ricks, "Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education," NBER Working Paper 32390 (2024), https://doi.org/10.3386/w32390.Download Citation
Published Versions
Thomas Goldring & Brian A. Jacob & Daniel Kreisman & Michael David Ricks, 2026. "Loopholes and the Incidence of Public Services: Evidence From Funding Career and Technical Education," Journal of Policy Analysis and Management, vol 45(1).