Equity and Efficiency as Implemented in School Finance Policy

I. Hadar, Amable Paulino

    Research output: Contribution to journalArticlepeer-review

    Abstract

    The tension between the two values of equity and efficiency is reflected in the planning of school finance policy (SFP) as well as in its implementation. As derived from this dynamics, a decentralized finance mechanism is viewed as more efficient and less equity-oriented than a centralized finance mechanism. In light of this view, the purpose of this research is to design an innovative SFP which aims to combine achieving equity and efficiency within a centralized finance system. In doing so, the design of this SFP involves to redefine the term educational equity to improve the rationalization of SFP. To this end, the evolution of educational efficiency and equity will be intertwined as the two leading concepts. In this regard, SFP that focuses on centralization /decentralization will be analyzed in accordance with their degree of achievement of efficiency and equity. Furthermore, a new SFP that combines a needs-based allocation of resources and improvement-based incentives will be presented and discussed. According to this new SFP, additional resources will be allocated to schools that will endeavor to improve the distribution of their students' pedagogical achievements. Finally, the addition of the incentives for improvement component will contribute to increase the efficiency, while achieving equity, in a centralized finance system.
    Original languageAmerican English
    Pages (from-to)1-17
    JournalJournal of Leadership, Accountability and Ethics
    StatePublished - 2009

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