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Title: Incentives, resources and the organization of the school system

Author(s): Facundo Albornoz-Crespo, Samuel Berlinski and Antonio Cabrales

Publication Date: August 2010

Keyword(s): education, parental effort and school resources

Programme Area(s): Public Economics

Abstract: We study a model where student eort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. We can show, for example, that an improvement in parental outside options will reduce parental and school effort, which are partially compensated through school resources. In this way we provide a rationale for the ambiguous existing empirical evidence on the effect of school resources. We also provide a novel microfoundation for peer effects, with empirical implications on welfare and on preferences for sorting across schools. 

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Bibliographic Reference

Albornoz-Crespo, F, Berlinski, S and Cabrales, A. 2010. 'Incentives, resources and the organization of the school system'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7964