Expenditures, Efficiency, and Equity in Education: The Federal Government's Role

Economists have long been concerned with educational policies, but, in this decade of educational reform proposals, economists have not made much effort to translate research into direct policy implications. This is particularly true with respect to federal government policies. This paper provides an overview of current federal involvement in education and considers what, if anything, research has to say about potential policy changes. At the outset I should make it clear that I believe that the general alarm about the state of our educational system is warranted. The educational system that produced so much of the wealth and opportunity for advancement in the United States in the past now faces serious problems. At the same time, I am quite skeptical about the efficacy of a much expanded federal role in education at this time.