Abstract
Within the research community, there is a vigorous debate over whether additional educational expenditures will lead to improved performance of schools. Some of the debate is an outgrowth of the lack of causal knowledge of the impacts of expenditures on student outcomes. To help fill this void, we examine the causal impact of capital expenditures on school district proficiency rates in Michigan using bond referendum election outcomes as a threshold for regression discontinuity design. Our results provide some evidence that capital expenditures can have positive effects on student proficiency levels.
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