Estimating the relationship between public and private inputs for K-12 education : evidence from longitudinal microdata

Philip Vinson

I examine whether private education expenditures and public K-12 funding are substitutes or complements for households whose children attend public school. Using a longitudinal microdata set, the Panel Study of Income Dynamics, I estimate the response of private household expenditures on education in response to changes in public expenditures. This paper implements a fixed-effects model that controls for unobservable household characteristics. I find evidence of complementarity between public and private education spending with an average elasticity of 2.4.

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Year of publication:	2024
Authors:	Vinson, Philip
Published in:	Review of Economic Analysis : REA. - Rimini : [Verlag nicht ermittelbar], ISSN 1973-3909, ZDB-ID 2535745-1. - Vol. 16.2024, 3, p. 371-391
Subject:	education expenditures \| consumption \| human capital \| public economics \| Humankapital \| Human capital \| Bildungsfinanzierung \| Education finance \| Bildungsinvestition \| Human capital investment \| Bildungsniveau \| Educational achievement