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Estimation and Evaluation of the Cost of Adequacy in School Aid Using Cost Function Approaches

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This paper attempts to estimate the impacts of environmental differentials on education spending, based on which constructing cost index used for intergovernmental transfer in light of adequacy. Additionally, we evaluate current Korean local education funding structure in comparison with typical foundation aid in the United States. Based on the estimation results based on eleven year panel dataset of New Jersey school districts, we construct cost indexes to reveal relative environmental differences facing school districts. We argue that Korean local education transfer systems have been constructed based on input standard, thereby being hard to achieve benefits of decentralized local education system designed to secure efficiency and reflect local preference.

Abstract

This paper attempts to estimate the impacts of environmental differentials on education spending, based on which constructing cost index used for intergovernmental transfer in light of adequacy. Additionally, we evaluate current Korean local education funding structure in comparison with typical foundation aid in the United States. Based on the estimation results based on eleven year panel dataset of New Jersey school districts, we construct cost indexes to reveal relative environmental differences facing school districts. We argue that Korean local education transfer systems have been constructed based on input standard, thereby being hard to achieve benefits of decentralized local education system designed to secure efficiency and reflect local preference.

참고문헌 (37)

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