Improving educational achievement in UK schools is a priority, and of particular concern is the low achievement of specific groups, such as those from lower socio-economic backgrounds. An obvious question is whether we should be improving the outcomes of these students by spending more on their education. The literature on the effect of educational spending on pupil achievement has a number of methodological difficulties, in particular the endogeneity of school resource levels, and the intra-school correlations in student responses. In this paper, we adopt a multilevel simultaneous equation modelling approach to assess the impact of school resources on student attainment at age 14. This paper is the first to apply a simultaneous equation model to estimate the impact of school resources on pupil achievement, using the newly available National Pupil Database (NPDB)
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