- The consequences of segregation on school reforms are more ambiguous than initially thought and the productivity consequences are clearer and probably of greater quantitative importance.
- Think jointly about school choice and school finance because financial incentives are the key to the way school choice actually works.
- Structure of school choice and school finance are crucial to how individuals solve their human capital investment problems and how much a society increases its human capital over time.
- Economics is valuable for the analysis of school reform:
- Econometric methods and evaluation techniques are very useful for analyzing school reforms.
- Many of the puzzles in K-12 schooling are related to financing, and most structural school reforms are loosely based on economic arguments.
- Educational systems ought to solve the problem of investment in human capital, which involves some capital market failures and spillovers.