Two Maxwell professors and their former graduate student have won the Richard Musgrave Prize, presented annually to the authors of the most outstanding paper published in the National Tax Journal. Professors William Duncombe and John M. Yinger, along with alumnus Wen Wang, wrote “School District Responses to Matching Aid Programs for Capital Facilities: A Case Study of New York’s Building Aid Program.”
The paper examined how a short-term increase in the matching rate for the Building Aid Program in New York affected district capital investment programs. School districts are funding a greater amount of capital investment through state financing, and in writing the paper Duncombe, Yinger and Wang sought to provide more information about how districts respond to facility aid programs. By estimating a capital investment model, the authors found that most districts are responsive to price incentives, but price responsiveness is tied to fiscal health and the urban location of a district. The authors also make recommendations to improve the design of capital investment aid programs to more effectively support high-need urban districts.
The paper appeared in the September 2011 issue of the National Tax Journal.
The National Tax Association publishes the National Tax Journal quarterly to encourage research in government finance. The Richard Musgrave Prize recognizes Musgrave’s contributions to the theory and practice of public finance while also honoring authors who have made new contributions to the field. All refereed papers published in the March, June and September editions of the National Tax Journal are eligible for the award. Members of the journal’s Editorial Advisory Board select the winning article.
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