Competition, expenditures and student performance in mathematics: Comment

In a recent issue of this journal (August, 1993), Couch et al. find that competition, as measured by the percentage of school-age children in a county who attend private schools, increases student performance in public schools. In addition, they find that school expenditures are positive and significant, although only marginally significant, in terms of influence on student performance. This paper extends the work by Couch et al. in two ways. First, this paper defines competition so as to include the effects of other public schools as well as private schools on student performance. Second, this paper explores the simultaneity of student performance and expenditures within the model formulation. Evidence presented suggests (1) that competition, as measured by other public schools and private schools, increases student performance, and (2) that empirical studies in this area need to recognize the simultaneous relationship between student performance and expenditures.