On the Use of Transparent Formulae to Allocate Federal Education Transfers
One of the key questions that arise in discussions of education decentralization, is how federal education resources should be allocated among the various states, and within states, among communities or schools. In general, there are two approaches...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/12/2813093/use-transparent-formulae-allocate-federal-education-transfers http://hdl.handle.net/10986/17741 |
| Summary: | One of the key questions that arise in
discussions of education decentralization, is how federal
education resources should be allocated among the various
states, and within states, among communities or schools. In
general, there are two approaches: (1) bilateral
negotiations between the federal government and states with
little transparency as to the rules, and (2) formula-based
distribution. The authors show that, based on econometric
analysis on federal education transfers data in Mexico, the
former approach can lead to allocation results that appear
contrary to stated policy objectives like equity improvement
and greater social inclusion in education. The authors then
argue that contrary to common belief, the use of capitation,
or per student allocation can improve not only efficiency
but also equity. They present a theoretical model to analyze
this hypothesis. The authors discuss several variations of
the capitation formula, and present an analysis of the
characteristics of the winners, and losers of their
application, using Mexico as an illustration. |
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