Scottish Journal of Political Economy
Developing persuasive and consistent models of educational performance has proved elusive. Existing modelling suggests no clear relationship between resources and student performance. This mirrors observed policy outcomes. A possible explanation is that the achievement process is a complicated interactive one such that simple linear additive formulations break down. This analysis presents a stylized model of achievement where unmeasured teacher quality interacts with both resources and specific educational programs. Standard econometric analyses then replicate the aggregate findings in the literature. A policy implication is that finding ‘best practices’ may fail without recognition of the fundamental interactions.