TY  - JOUR
AB  - 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)
AU  - Shi, Mark J. Chin
Lena
DA  - August 2020
DO  - 10.26300/kvw2-5725
PY  - 2020
ST  - The Impact of Political Party Control on Education Finance and Outcomes: Evidence from U.S. States
T2  - EdWorkingPapers.com
TI  - The Impact of Political Party Control on Education Finance and Outcomes: Evidence from U.S. States
UR  - https://www.edworkingpapers.com/ai20-280
ID  - 254
ER  -