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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. CHAPTER 7 EDUCATION
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7-2 Justifying Government Intervention in Education Is Education a Public Good?
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7-3 What Can Government Intervention in Education Accomplish? Should public education be free and compulsory? Should government produce public education?
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7-4 Real Annual Expenditure Per Pupil in Public Elementary and Secondary Schools Source: US Bureau of the Census [2009, p. 151]
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7-5 Does Government Spending Improve Educational Outcomes? SOURCE: Organization for Economic Cooperation and Development [2007a]. Real Annual Expenditures on Private and Public Schools, All Levels of Education (2007)
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7-6 Does Government Spending Improve Educational Outcomes? Test Scores of Developed 29 Countries 15-Year-Olds 15 th Reading 9 th Science Literacy 24 th Mathematics Literacy
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7-7 Modeling Education Quantity of Education Quantity of all other goods A B
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7-8 Modeling Education Quantity of Education Quantity of all other goods A B
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7-9 Modeling Education Quantity of Education Quantity of all other goods A B
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7-10 Modeling Education What form of government intervention increases the quality of education in theory? Demonstrate Your Result with a Partner
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7-11 New Directions for Public Education- Vouchers Vouchers financial grants to families that can be used to pay their children’s tuition at (nearly) any school Model? Competition Opposition Information Availability for Consumers Ignore Positive Externalities Focus on Wages Schools Deteriorate Higher-Ability Students Tend to Leave Inequitable
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7-12 New Directions for Public Education- Vouchers Empirical Evidence Milwaukee $3,200 Vouchers to Low Income Students Higher Math Scores (Same Reading) DC, NYC and Dayton, OH No Effect on Hispanics and Whites Higher Reading Scores for African Americans
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7-13 Does Government Spending Improve Educational Outcomes? Empirical Evidence: Does Spending on Education Improve Student Test Scores?
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7-14 Public Spending and the Quality of Education Empirical Evidence: Does Reducing Class Size Improve Student Test Scores? Measuring Costs 10% Reduction in US Class Sizes $692 per pupil Measuring Benefits? Suppose Small Class Sizes Have Better Test Scores Issues?
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7-15 Public Spending and the Quality of Education Empirical Evidence: Does Reducing Class Size Improve Student Test Scores? Tennessee's Student Teacher Achievement Ratio (STAR) 4 Years 11,601 Students Random Class Sizes K-3 rd Grade 13 to 17 Students per Teacher 22 to 25 Students per Teacher Better Performance on Exams in Small Classes Smaller Class Students More Likely to Take College Entrance Exams Larger Effect on African-American Students
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7-16 Public Spending and the Quality of Education Empirical Evidence: Does Reducing Class Size Improve Student Test Scores? CA Passed Law to Reduce Class Sizes by 10% Problem? Israel 40 Student Max Not Clear on Performance
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7-17 Public Spending and the Quality of Education Empirical Evidence: Does Reducing Class Size Improve Student Test Scores? Timings of Births Not Clear
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7-18 Does Education Increase Earnings? Elementary and Secondary Education Decreasing Returns Education and Earnings Theoretical
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7-19 New Directions for Public Education- Charter Schools Charter Schools public schools operating under special state charters that permit experimentation and allow independence Empirical Evidence Diversity of Choice Student Outcomes
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7-20 New Directions for Public Education-School Accountability School Accountability monitoring student and school performance via standardized tests
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7-21 New Directions for Public Education-School Accountability No Child Left Behind Act (2001) (2002) Annual Testing 3 rd through 8 th (Primary Ed.) School Report Cards Inadequate Progress 2 Years: Allow Transfer 3 Years: Tutors and Remedial Classes 4 Years: Structural Changes
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7-22 New Directions for Public Education-School Accountability Empirical Evidence? Higher Scores Rewards or Punishment with Report Cards Why?
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