Abstract
This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper: Improvement in the Educational Achievement Distribution. The development of the budget allocation formula is demonstrated utilizing Israeli data. Large-scale, nationwide datasets relating students' academic achievement to student background variables, teacher profiles, and school characteristics were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.
Original language | English |
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Pages (from-to) | 341-362 |
Number of pages | 22 |
Journal | Education Economics |
Volume | 19 |
Issue number | 4 |
Early online date | 18 May 2010 |
DOIs | |
State | Published - Sep 2011 |
Keywords
- Funding formula
- School budgets
- School finance
All Science Journal Classification (ASJC) codes
- Education
- Economics and Econometrics