Entry into the Schooling Market: How is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?

This research examines the location choice of private schools entering the California schooling market in 1979–80. We find that entrants are more likely to locate in public school districts with lower levels of per–pupil expenditure and higher fractions of public school students who reside in low–in...

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Bibliographic Details
Published in:Bulletin of economic research 2002-10, Vol.54 (4), p.341-371
Main Authors: Downes, Thomas A., Greenstein, Shane M.
Format: Article
Language:English
Subjects:
Economic impact
Economic models
Economic theory
Location of industry
Private schools
Public schools
School districts
Studies
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Summary:This research examines the location choice of private schools entering the California schooling market in 1979–80. We find that entrants are more likely to locate in public school districts with lower levels of per–pupil expenditure and higher fractions of public school students who reside in low–income households. In addition, we provide evidence of differences in the responsiveness of different types of private schools to the underlying conditions. Also, in comparing our results to those of previous research, we find that the determinants of the location choices of entrants appear to be the same as the determinants of the location pattern of incumbent private schools.
ISSN:0307-3378
1467-8586
DOI:10.1111/1467-8586.00156