1. Charter School Competition: An Examination of Michigan Anthony Galston Economics Student

2. Charter Schools Public school started by an individual or group “Specific educational objectives” Exempt from non-federal laws that restrict charter schools from flexible management Not exempt from equal rights, access, discrimination

3. Michigan Charter Schools Program began in 1994-95 with 12 schools Today: 375 charter schools in 298 buildings Authorizing Agencies: – State public universities (70%) “The Cap” Pre-K through 12 State funding is about $7000 per child

4. Question Is traditional public school performance impacted by surrounding charter schools?

5. Theories Competition – Traditional public schools changing teaching strategies Peer Effects – Sorting – Cream skimming

6. Literature Review Hoxby (National Bureau of Economic Research, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

7. Hoxby (2003) A B

8. Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

9. Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

10. Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

11. Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

12. Why This Is Different Number of competitors Size of competitors Distance among competitors Long panel data School Level

13. The Data Panel data set: – 2000-01 to 2011-12 public school data in Michigan – School level data ArcMap 10

14. GIS – ArcMap 10

15. The Models Fixed Effects School-Level Value-Added Education Production Function

16. MEAP Examination Michigan Education Assessment Program Began in the 1970s Grades 3 through 9 Reading, Math, Writing (4 & 7), Science (5 & 8), Social Studies (6 & 9)

18. Dependent Variables Advanced MEAP Math – percentage of students that scored advanced in mathematics Advanced MEAP Reading – percentage of students that scored advanced in reading Proficient MEAP Math – percentage of students that scored at least proficient in mathematics Proficient MEAP Reading – percentage of students that scored at least proficient in reading

19. Independent Variables Measure of Competition – Competition Index – measures the amount of competition from charter schools within n miles Misra, Grimes & Rogers (Economics of Education Review, 2012)

20. Independent Variables

22. Main Results Fixed Effects – Negative impact on nearly all levels School-Level Value-Added Education Production Function – No significant impact

23. FIXED EFFECTS

26. SCHOOL-LEVEL VALUE-ADDED EDUCATION PRODUCTION FUNCTION

29. Extreme Bound Analysis Proficient and Higher: Reading: 10 miles: [-0.150, -0.006] 15 miles: [-0.155, -0.006] 20 miles: [-0.156, -0.006] Proficient and Higher: Mathematics: 10 miles: [-0.089, 0.004] 15 miles: [-0.091, 0.005] 20 miles: [-0.091, 0.006] Leamer (1983)

30. Extreme Bound Analysis Advanced: Reading: 10 miles: [-0.254, -4.01e-4] 15 miles: [-0.256, -5.60e-4] 20 miles: [-0.255, -8.13e-4] Advanced: Mathematics: 10 miles: [-0.198, -0.006] 15 miles: [-0.198, -0.005] 20 miles: [-0.197, -0.005] Leamer (1983)

31. Conclusions Competition – Little significant evidence to suggest that charter schools are effecting traditional public schools – Leamer Extreme Bound Analysis suggests if charter schools have any effect, it’s negative Cream-skimming – Fixed effects suggests this may occur – Leamer Extreme Bound Analysis suggest this is occurring

32. APPENDIX