Debates persist about the use of case studies as a research methodology, but regardless of how that issue is resolved, the judicious use of case studies as a teaching instrument can be very effective. The controversy over tax exemptions for private schools which discriminate on the basis of race serves as one example. Questions about theory, political institutions, and substantive policy issues abound, and the timeliness and sensitivity of the issue make for a stimulating study of American government and public policy.

On January 8, 1982, the Reagan Administration announced that private schools which discriminate on the basis of race would no longer be denied tax-exempt status. The Administration defended this policy change as an effort to prevent bureaucrats from making policy in the absence of specific guidance from Congress.