“…While some research (Hanushek, 1986;Hanushek, 1989;Okpala, Okpala, & Smith, 2001) concluded that there was no relationship between expenditures and achievement, Ismail and Cheng (2005) have argued that the results from Hanushek (1986Hanushek ( , 1989 were based on poor data and inappropriate methodology. Archibald (2006) found positive effects of per-pupil expenditures on reading achievement throughout primary and secondary education, while Eide and Showalter (1998) used quantile regression to show that per-pupil expenditures are important for the tail end of the performance distribution, in other words, students at the lowest end of test score distributions benefit significantly from greater expenditures. Finally, expenditures may act as an endogenous variable to performance, or may have a mediating (indirect) effect through greater access to effective teachers, more successful pedagogy, and a reduction in class size (Wenglinsky, 1997;Elliot, 1998;Sander, 1999).…”