Peer effects in private and public schools across countries

Many argue that the composition of a school or classroom‐that is, the characteristics of the students themselves‐affect the educational attainment of an individual student. This influence of the students in a classroom is often referred to as a peer effect. There have been few systematic studies that empirically examine the peer effect in the educational process. In this research, we examine the peer effect with a unique data set that includes individual student achievement scores and comprehensive characteristics of the students' families, teachers, other school characteristics, and peers for five countries. The data allow an examination of peer effects in both private and public schools in all countries. Our analysis indicates that peer effects are a significant determinant of educational achievement; the effects of peers appear to be greater for low‐ability students than for high‐ability students. The finding is robust across countries but not robust across school type. © 2000 by the Association for Public Policy Analysis and Management.     

Elemental tests of the traditional rational voting model

A simple, robust, quasi-linear, structural general equilibrium rational voting model indicates turnout by voters motivated by the possibility of deciding the outcome is bell-curved in the ex-post winning margin and inversely proportional to electorate size. Applying this model to a large set of union certification elections, which often end in ties, yields exacting, lucid tests of the theory. Voter turnout is strongly related to election closeness, but not in the way predicted by the theory. Thus this relation is generated by some other mechanism, which is indeterminate, as no existing theory explains the nonlinear patterns of turnout in the data.     

The role of tax bases and collections costs in the determination of income tax rates,seigniorage and inflation

A growing theoretical literature on optimal taxation predicts that governments will set the tax rates on money holdings and on more traditional tax bases to minimize the deadweight losses of collecting government revenue. Under the presumption that relative collection costs and tax bases have not changed significantly over time, the empirical time-series seigniorage literature has focused on the theory's tax smoothing implication, finding only weak support. We show that changes in collections costs and tax bases played an important role in the determination of tax composition and find stronger support for tax smoothing when this is taken into account.     

Boards of trustees,agency problems,and university output

The analysis and empirical evidence in this paper indicate that the structure of the boards of trustees of state universities influences the provision of higher education. The structure of the boards is important because it helps to define the constraints on the board members and on the internal agents of the universities. An implication of this study is that public universities can be made to function more like private ones by placing them under separate governing boards.These results are especially interesting when examining the trends regarding board structures. The trend over this century across the states has been toward increasing the number of universities under the jurisdiction of a single board. This analysis suggests that the trend is a response to political pressure from educators, not from taxpayers and consumers of higher education.     

State university boards of trustees: A principal-agent perspective

This paper extends the economic theory of organizations by examining the structure of boards of trustees in public university settings. A major implication of the analysis is that the structure of the board of trustees reflects the costs to politicians of allowing internal agent shirking. Empirical evidence supports this hypothesis and indicates that a system method of governing versus individual board governance of universities is linked to the influence of educators in the political process.