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Econometric Issues in Education Finance

Several econometric issues within the field of education finance that have not been fully explored to date are addressed. Focusing on demographic factors and per-pupil expenditures in the United States, an econometric model that incorporates spatial analysis is developed and a unique framework for analyzing the impact of demographics on local public demand is introduced. The results show that ethnic diversity has a negative impact on per-pupil spending, while the elderly have a positive impact.