An Analysis of Resource Allocation in Public School Districts

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Abstract
This paper presents a theoretical and empirical analysis of the process of resource allocation in public school districts including the determination of the demand for school inputs, the salaries of school personnel, and the level of local educational expenditures. Some of the issues investigated in the empirical analysis include (1) the price and income elasticity of the demand for teachers, (2) the effects of tenure on the demand for certain teacher quality character istics, (3) the determinants of the equilibrium salaries of teachers and public school administrators, (4) the differences between the effects of changes in community income and federal and state grants-in-aid on local school spending, (5) and the compensatory effects of grants-in-aid on school spending, the demand for school inputs, and salaries of school personnel in high and low income districts.

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