Hanushek's policy prescription is a short list: (1) build strong accountability systems that measure student performance and attribute schools' value-added; (2) provide direct incentives—including competition and choice so parents help decide which schools are rewarded; and (3) restructure school funding to reward performance—providing extra resources for higher-need students for equity, but otherwise sending money toward high value-added and not toward failure, reversing the current tendency to give failing districts more resources.