Grade-Dependent Costs of Education: Evidence from Illinois Jennifer Imazeki San Diego State University Department of Economics jimazeki@mail.sdsu.edu 5500 Campanile Drive San Diego, CA 92182 (619) 594-5012 DRAFT *** DRAFT *** DRAFT March 2001 In this paper, I estimate cost functions for public education in Illinois and examine whether there are differences in the cost structures of K-12, elementary and high school districts and the implications of these differences for policy. I use the cost function results to generate cost indices for each district type. I find that the cost structures of unified and separated districts are likely to be different. Assuming that they are the same can lead to an over-statement of costs in elementary districts and an under-statement of costs in high school districts.