Posted: December 10th, 2014

The Committee on Fiscal Equity (CFE) sued the State of New York for providing less funding support for Public Schools in New York City than for schools in other parts of the State. New York City had 38 percent of the students, but received only 35 percent of general school aid. The State countered that New York City does not support its own schools well and that money may not make a difference anyway

The Committee on Fiscal Equity (CFE) sued the State of New York for providing less funding support for Public Schools in New York City than for schools in other parts

of the State. New York City had 38 percent of the students, but received only 35 percent of general school aid. The State countered that New York City does not support

its own schools well and that money may not make a difference anyway. This case came to trial.

The State called Professor Hanushek as a witness. Hanushek provided testimony for the State based upon some version of the article that you have read. Hanushek’s main

point was that an evaluation of many educational production functions shows no consistent pattern of resource effectiveness on achievement and dollars are unlikely to

make a difference in achievement results. Another witness was asked to counter Hanushek’s testimony, by using the reanalysis by Hedges and colleagues. That witness

suggested that Hedges reanalysis showed that there are some consistent positive effects of resources on achievement. This is also supported by a paper that was not

available at the time, the one by Loeb and McEwan.
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Assume that you are a consultant to the Court. The Judge seems to be bewildered by the conflicting perspectives and evidence. After all, analyses of the same data are

being used to support two diametrically opposing conclusions. You are asked to assist the judge in interpreting these studies by explaining how they differ and by also

drawing upon the Loeb and McEwan paper.

1-    Describe the Hanushek (1989) and Hedges et al. (1994) studies briefly. What did they attempt to do and what methods were used? (2 pages)

2-    Why do the conclusions differ? (1 pages)

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