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1.  Murray, Evans and Schwab (1998) describe changes in school financing following judicial rulings.

2.  This discussion follows the framework used by Stiglitz (1991).

3.  See for example Chubb and Moe (1990).

4.  Head Start is the main federally funded early education program for economically disadvantaged children.

5.  See Hanushek (1996) for a discussion of these issues.

6.  See Hanushek (1996) and Greenwald, Hedges and Laine (1996) for summaries of the education production function literature and the debate over the link between outcomes and resources.

7.  See Hanushek, Kain and Rivkin (1999) and Ferguson (1991) for evidence on teacher test scores and Brewer and Ehrenberg (1994) for evidence on a number of teacher characteristics.

8.  Tiebout (1956) describes the effects of residential choice on the provision of local public services. Clotfelter and Ladd (1996) find limited evidence that the merit school program in Dallas exerted a positive effect on performance, though the results are far from conclusive due to the difficulty of specifying appropriate control groups. The results in Hoxby (forthcoming) suggest that metropolitan areas in which students have more districts from which to choose tend to have more productive schools, and the results from Hoxby (1994) suggest that an expansion of the availability of private school alternatives also increases public school productivity. Rouse (1999) finds some support for the superiority of private schools, though the evidence is not overwhelming and the identification strategy may have some problems. To date the evidence for charter schools is quite limited.

9.  The Perry Preschool study randomly assigned students to treatment (Perry Preschool) and control groups and evaluated children for a number of years following preschool.