The purpose of this project is to analyze three sets of major policy issues in education: 1) the distribution of education resources, 2) the distribution of educational outcomes, 3) and the distribution of the benefits of education reform. Regarding the distribution of educational resource, special attention will be paid to the move in recent years to equalize school expenditures across taxing jurisdictions. The questions to be addressed include to what extent has the inequality of spending been reduced, and what evidence is there that changing the distribution of spending has had important education benefits. With respect to the second issue, the distribution of educational outcomes has changed significantly over the past 25 years. For example, the gap between black and white test scores and high school graduation rates has narrowed sharply. Special attention will be focused on the determinants of these patterns. The third issue of education reform will focus on the implication of increasing school choice and increasing the role of the private sector in providing public education. In particular, little is know about who the likely winners and losers would be if the choice movement continues. Special attention will focus on the analysis of the distribution of benefits from expanded choice.