| Abstract: | Numerous studies suggest that family or community effects dominate the production process in public education, and that marginal products of public school inputs are virtually zero. This paper argues that such findings result from ignoring the variety of school outputs, and the possibility for community choice among them. Systematic differences in school output preferences, by socioeconomic status and race, are used to explain differences in school outputs, usually taken to indicate differences in production possibilities. Estimates of multiple output production and cost functions allowing for choice do show reductions in background effects on production possibilities, though some effects remain. |
