No. 4/2008: PUBLIC SECTOR DECENTRALIZATION AND SCHOOL PERFORMANCE: INTERNATIONAL EVIDENCE. Torberg Falch and Justina A.V. Fischer) Abstract: Using a panel of international student test scores, 1980 – 2000, panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of, or decentralization in, educational spending.