The ethics of resource allocation in education: A case study of Texas public school finance

Public school finance is ultimately a resource allocation problem addressed according to various standards of equity and efficiency. As such, it is a policy issue that should lend itself well to economic investigation. Yet the constraints of contemporary economic theory limit the contributions of economics to resolving this problem.;This dissertation attempts to broaden the horizon of economic inquiry by considering alternative ethical perspectives for the allocation and distribution of resources. Economic views of equity and efficiency are reviewed along with those of libertarianism, utilitarianism, John Rawls' justice as fairness, and Amartya Sen's basic capabilities. These perspectives are then examined in the context of the public school finance problem. The Edgewood era of school finance in Texas serves as a case study for the application of these ethical perspectives, particularly within the context of definitions of efficiency and equity that guided decisions by the courts and legislature.;Observations and conclusions suggest that the major ethical theories (libertarianism, utilitarianism, and Rawls' justice as fairness) all suffer distinct shortcomings for addressing the school finance problem. The basic capabilities approach of Amartya Sen, on the other hand, provides a much richer framework for assessing equity and efficiency in school finance. With respect to the Texas school finance case, a basic capabilities approach is consistent with the State's goals for public education and court guidelines for a constitutional system of school finance. In addition, the framework provides parameters for other education reform issues relating to structure, accountability and innovation. The intent of this dissertation is not to suggest a specific solution, but rather to lay the foundation for the application of a particular framework (i.e. basic capabilities) from which solutions may be derived.