How much does my neighbor spend?: A Spatial Analysis of Wage and Spending Competition Among Neighboring School Districts Using Geographically Weighted Regression

When looking at school spending rates, one may find school districts that are descriptively similar, but which are located in different geographical contexts, actually spend at very different levels. In this book, a way to more fully explain that observation, termed 'spatial-fiscal variability' is explored by applying a new spatial analytical method called geographically weighted regression (GWR). Evidence suggests that GWR more fully explains spatial-fiscal variability when compared to ordinary least squares and spatial autoregressive approaches and concludes that GWR is a useful method for helping to understand complex geo-spatial school finance policy issues. Further, there is evidence to suggest that poor school districts that are surrounded by relatively wealthier school districts spend at a greater rate than otherwise would be expected compared to similarly poor districts surrounded by other similarly poor districts. Policy options that are designed to address this issue are discussed.