Caroline M Hoxby, a professor of economics at Harvard University prepared the report School Choice: The Three Essential Elements and Several Policy Options based on a keynote to New Zealand economists. From a summary by the Education Forum, she makes 3 key points: 
-Supply flexibility, which means that schools should have the ability to open where there is demand for them, expand with increased demand and contract with reduced demand.
-Money should follow students, which means that funding policies must be designed so that schools that are in demand have the funds to expand and those that are not in demand lose funds and must contract.
-Independent management of schools, which means that schools must be free to innovate in a range of areas, including pedagogy, teacher pay, budget allocation, and the way the school is organized.