This article begins by reviewing the main body of evidence about the effectiveness
of resources devoted to schools. It then discusses some of the central implications
for policy and for economic research. The implications for educational policy draw
heavily on the discussion of the Panel one the Economics of Education Reform (PEER),
a group of economists who met over a four-year period to discuss economic aspects
of educational investments. Those recommendations are only sketched here, but are
detailed in its report, Making Schools Work (Hanushek and others, 1994).