Institutional Effects in a Simple Model of Educational Production

By J. Bishop, Ludger Wößmann. Social Science Research Network, 2004

208 citations recorded by the source corpus.

This paper presents a model of educational production that tries to make sense of recent evidence on effects of institutional arrangements on student performance. In a simple principal–agent framework, students choose their learning effort to maximize their net benefits, while the government chooses educational spending to maximize its net benefits. In the jointly determined equilibrium, schooling quality is shown to depend on several institutionally determined parameters. The impact on student performance of institutions such as central examinations, centralization versus school autonomy, teachers' influence, parental influence, and competition from private schools is analyzed. Furthermore, the model can rationalize why positive resource effects may be lacking in educational production.

Subfields: Economics and Econometrics, Education, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/54c7bd88ffcccbc22d521d53f5caa9151ff3e7af

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Citations in the corpus

Does School Autonomy Make Sense Everywhere? Panel Estimates from PISA (2011, unknown): “Such heterogeneity may reflect another channel of the autonomy effect, as decentralization may work better with sophisticated parents (Galiani, Gertler, and Schargrodsky (2008)).”
Fundamental Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries (2007, unknown): “…the efficiency of a school system because market forces create incentives for cost effectiveness and performance-conducive qualitative innovation, both for privately managed schools and for nearby public schools that face their competition (cf., e.g., Shleifer 1998; Bishop and Wößmann 2004).”
International Evidence on School Competition, Autonomy, and Accountability: A Review (2007, background): “For 6Compare Bishop and Wößmann (2004) for a more elaborate theoretical model of institutional effects in education. example, it estimates whether students show better educational performance in countries where parents and schools have a certain kind of choice relative to students in countries…”