The real effects of debt relief : evidence from independent school districts in Texas

U.S. school districts face pressing needs for facility improvements, yet limited debt capacity hampers their ability to raise sufficient funding for these projects. I study how capital spending affects educational outcomes in heavily indebted school districts. Using a novel quasi-natural experiment, I find that debt support helps school districts raise additional capital spending, leading to substantial long-term improvements in educational outcomes, including higher test scores and graduation rates. The findings suggest that state intervention in debt capacity can produce long-run positive effects by revitalizing previously forgone high-impact projects.

Name thesis:degree_name

Doctor of Philosophy

Level thesis:degree_level

Doctoral

Discipline thesis:degree_discipline

Finance

Grantor

The University of Texas at Austin

Year dc:date.issued

2025

Author dc:creator

• Lee, Thomas S., Ph. D.

Advisor dc:contributor.advisor

• Sialm, Clemens

Committee members dc:contributor.committeemember

• Murphy, Richard J., Ph. D.
• Pancost, Nathaniel A
• Johnson, Travis L.

• Public economics
• Public finance
• Capital structure
• Municipal finance
• Empirical corporate finance

Identifier URI

https://doi.org/10.26153/tsw/61929

OAI identifier oai:identifier

oai:repositories.lib.utexas.edu:2152/134607