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Estimates Of Cost Functions For Primary Schools In Rural Areas

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  • Hind, Ian W.

Abstract

Rural depopulation has put in question the economic viability of many rural institutions. This paper discusses a number of the important conceptual issues that need to be considered when examining the economics of one group of rural institutions, namely schools. Measurement of educational output in particular is fraught with many difficulties. The paper then presents some estimates of cost functions for primary schools in rural areas of New South Wales. The approach combines conventional statistical methods of deriving cost functions with synthetic procedures based on the technology of schooling. It is found that economies and diseconomies of size do exist with respect to certain costs, but it is not clear whether savings can be realized from consolidation of schools, due to the existence of extra pupil transport costs resulting from consolidation.

Suggested Citation

  • Hind, Ian W., 1977. "Estimates Of Cost Functions For Primary Schools In Rural Areas," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(1), pages 1-13, April.
    • Handle: RePEc:ags:ajaeau:22990
    DOI: 10.22004/ag.econ.22990
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    References listed on IDEAS

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    1. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 74-103, Part II, .
    2. Henry M. Levin, 1974. "Measuring Efficiency in Educational Production," Public Finance Review, , vol. 2(1), pages 3-24, January.
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    5. David W. Holland & John L. Baritelle, 1975. "School Consolidation in Sparsely Populated Rural Areas: A Separable Programming Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 567-575.
    6. Osburn, Donald D, 1970. "Economies of Size Associated with Public High Schools," The Review of Economics and Statistics, MIT Press, vol. 52(1), pages 113-115, February.
    7. Samuel Bowles, 1970. "Towards an Educational Production Function," NBER Chapters, in: Education, Income, and Human Capital, pages 11-70, National Bureau of Economic Research, Inc.
    8. Gintis, Herbert, 1971. "Education, Technology, and the Characteristics of Worker Productivity," American Economic Review, American Economic Association, vol. 61(2), pages 266-279, May.
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    11. Elchanan Cohn, 1968. "Economies of Scale in Iowa High School Operations," Journal of Human Resources, University of Wisconsin Press, vol. 3(4), pages 422-434.
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    Cited by:

    1. Colegrave, Andrew D. & Giles, Margaret J., 2008. "School cost functions: A meta-regression analysis," Economics of Education Review, Elsevier, vol. 27(6), pages 688-696, December.
    2. Rodríguez-Soler, Rocío & Uribe-Toril, Juan & De Pablo Valenciano, Jaime, 2020. "Worldwide trends in the scientific production on rural depopulation, a bibliometric analysis using bibliometrix R-tool," Land Use Policy, Elsevier, vol. 97(C).

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