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School District Income Taxes and School Inputs: the Case of Ohio

  • 31/03/2022
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This study is the first to explore the relationship between school district income taxes and school inputs (expenditures and student-teacher ratios) using ohio as a case study. The study employed reduced-form expenditure functions on a data panel of 609 school districts between 1990 and 2010. Treating for the endogeneity of school district income taxes, we found that income tax adopters in ohio spent $0.20 Of a dollar of the tax revenue on operating purposes, and they spent four-fifths of this $0.20 On instructional services that were likely to induce gains in student achievement. Also, we found ambiguous evidence on the effect of income tax revenues on student-teacher ratios.

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