This paper addresses two important issues concerning US education: first do monetary inputs affect educational achievement; and second, if monetary inputs do affect educational achievement, how does the US compare internationally, when considering both achievement and fiscal effort? We use several national and international reading and mathematics achievement tests as educational outputs; and US state and international income and educational expenditures per capita as inputs. Given our use of aggregate data we focus on describing the relationship between educational inputs and outputs at the state or national level. Still, our results indicate that there is an association between relative fiscal effort and achievement. We find that the US performs as expected, given its income and relative fiscal effort. We also find several US states to be as efficient as top performing foreign nations.
International Educational Performance of the United States: Is there a problem that money can fix?
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