A 2-equation model indicates that an increase in spending per student will attract students into the public school system. In turn, the response of the local government to this influx of students will be additional expenditures on education, but not such as to maintain the target level of spending per student. (Author)

A study investigated the impact of a negative income tax and a program of schooling subsidies on the demand for schooling of adult heads of families. Strong effects of the schooling subsidies were found, but net effects of the negative income tax on schooling were not significant. (LRA)

A study to determine the effects of free counseling services and a program of subsidies for the direct costs of education and training revealed that the subsidies did induce increased school attendance, and both counseling and training affected labor supply. However, no subsequent effects of increased human capital have been found. (LRA)