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David M. Brasington
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Publisher: Journals Gateway
The Review of Economics and Statistics (2003) 85 (4): 874–883.
Published: 01 November 2003
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A political jurisdiction may decide to cooperate in public schooling provision with its neighbors or remain independent. The determinants of the consolidation decision are compared for the richer and the poorer and for the whiter and the less white jurisdiction in each potential consolidation pair. Property values and scale economies matter most. However, poorer jurisdictions prefer merging with richer ones that are less white than themselves. Whiter jurisdictions prefer to consolidate with less white ones of similar income. Less white jurisdictions are more open to consolidation with whiter ones if their incomes differ in either direction. Traditional club-theory predictions are not supported.