@EdWorkingPaper{ai20-280, title = "The Impact of Political Party Control on Education Finance and Outcomes: Evidence from U.S. States", author = "Mark J. Chin, Lena Shi", institution = "Annenberg Institute at Brown University", number = "280", year = "2020", month = "August", URL = "http://www.edworkingpapers.com/ai20-280", abstract = {Given states’ balanced budget requirements, investment decisions often involve trade-offs between policymakers’ budget priorities. Does political party control affect investment decisions and outcomes? Using a regression discontinuity design based on close state elections between 1984-2013, we find that marginally Democratic legislatures spend more on higher education but less on K-12 education. Rather than trading off within the education budget, policymakers trade education and welfare, particularly in liberal and high-poverty states. Increases in local revenue offset party differences in K-12 spending, suggesting that policymakers make trade-offs by considering the availability of external budget sources and how investments respond to constituents’ needs. (JEL I22, I28, H72, H75)}, }