DID THE TAX REVOLT REDUCE SCHOOL PERFORMANCE

This paper uses detailed school-level data from 49 states to analyze t he effects of tax-revolt era property tax limitations on school servic es. I find that limitations are associated with larger student-teacher ratios and lower cost-of-living adjusted starting teacher salaries, a ll else equal. These results are robust to modelling the results as en dogenous and using a variety of measures for whether the limitation bi nds at particular schools. However, I find no such evidence that schoo ls subject to limitations have reduced their administrative costs. Fur thermore, I find that limitations are associated with lower student pe rformance on mathematics, science, social studies and reading examinat ions, all else equal. (C) 1997 Elsevier Science S.A.