IEP Scholar Sarah Oh has written a paper entitled Effects of the Discount Rate and Urbanicity on E-rate Funds from 1998-2012. The abstract from the paper reads as follows:
Broadband in schools has been financially supported by the E-rate program for over fifteen years in the United States. Although prior studies have measured impacts of demographic criteria on fund distribution, this study focuses on the discount rate and urbanicity type of schools and students on priority 2 internal connections funds from 1998-2012. Funds aggregated by state are regressed on average discount rates of fund recipients. Funds are also regressed on the number of city, suburb, town, and rural schools and students per state. Treatments are defined to include and exclude New York, California, and Texas, three states with the largest share of funds. The effect of the discount rate is statistically significant in both treatments. The effect of urbanicity is statistically significant for city schools and city students over all states, but this effect becomes insignificant when excluding New York, California, and Texas. A quasi-experiment on data from FY2010, a year when the FCC waived the discount rate criteria, also supports these results.
The full paper can be downloaded here: