Affiliation:
1. Kenneth C. Griffin Department of Economics, University of Chicago, NBER, and CESifo (email: )
2. Rand Corporation (email: )
Abstract
School policies that cause a large demand shift between public and private schooling may cause some private schools to enter or exit the market. We study how the policy effects differ under a fixed versus changing market structure in the context of a public school funding reform in New York City. We find evidence of a reduction in private schools in response to the reform. Using a model of demand for and supply of private schooling, we estimate that 20 percent of the reform’s effect on school enrollments came from increased private school exit and reduced private school entry. (JEL H75, I21, I22, I28)
Publisher
American Economic Association
Subject
Economics and Econometrics
Cited by
11 articles.
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