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Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach

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  • Kalyan Chakraborty

    (School of Business, Emporia State University)

  • Basudeb Biswas

    (Department of Economics, Utah State University)

  • W. Cris Lewis

    (Department of Economics, Utah State University)

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    Abstract

    This paper uses both the stochastic and nonstochastic production function approach to measure technical efficiency in public education in Utah. The stochastic specification estimates technical efficiency assuming half normal and exponential distributions. The nonstochastic specification uses two-stage data envelopment analysis (DEA) to separate the effects of fixed inputs on the measure of technical efficiency. The empirical analysis shows substantial variation in efficiency among school districts. Although these measures are insensitive to the specific distributional assumptions about the one-sided component of the error term in the stochastic specification, they are sensitive to the treatment of fixed socioeconomic inputs in the two-stage DEA.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 67 (2001)
    Issue (Month): 4 (April)
    Pages: 889-905

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    Handle: RePEc:sej:ancoec:v:67:4:y:2001:p:889-905

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    Cited by:
    1. Philippe K. Widmer & Peter Zweifel, 2008. "Public Good Provision in a Federalist Country: Tiebout Competition, Fiscal Equalization, and Incentives for Efficiency in Switzerland," SOI - Working Papers, Socioeconomic Institute - University of Zurich 0804, Socioeconomic Institute - University of Zurich, revised Dec 2010.
    2. Haelermans, Carla & Ruggiero, John, 2013. "Estimating technical and allocative efficiency in the public sector: A nonparametric analysis of Dutch schools," European Journal of Operational Research, Elsevier, Elsevier, vol. 227(1), pages 174-181.
    3. Anna Domagala, 2007. "Data Envelopment Analysis – a method for measuring the relative technical efficiency," Operations Research and Decisions, Wroclaw University of Technology, Institute of Organization and Management, Wroclaw University of Technology, Institute of Organization and Management, vol. 3, pages 21-34.
    4. Primont, Diane F. & Domazlicky, Bruce, 2006. "Student achievement and efficiency in Missouri schools and the No Child Left Behind Act," Economics of Education Review, Elsevier, Elsevier, vol. 25(1), pages 77-90, February.
    5. Ahmad Nawaz, 2010. "Efficiency and Productivity of Microfinance: Incorporating the Role of Subsidies," Working Papers CEB, ULB -- Universite Libre de Bruxelles 10-009.RS, ULB -- Universite Libre de Bruxelles.
    6. Ryan, Chris, 2013. "What is behind the decline in student achievement in Australia?," Economics of Education Review, Elsevier, Elsevier, vol. 37(C), pages 226-239.
    7. Pierre Ouellette & Valérie Vierstraete, 2008. "Malmquist indexes with quasi-fixed inputs: An application to school districts in Québec," Cahiers de recherche, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke 08-25, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
    8. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers, Middle Tennessee State University, Department of Economics and Finance 200703, Middle Tennessee State University, Department of Economics and Finance.
    9. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, Elsevier, vol. 136(1), pages 31-64, January.
    10. Fandel, Gunter, 2007. "On the performance of universities in North Rhine-Westphalia, Germany: Government's redistribution of funds judged using DEA efficiency measures," European Journal of Operational Research, Elsevier, Elsevier, vol. 176(1), pages 521-533, January.
    11. Kalyan Chakraborty & John Poggio, 2008. "Efficiency and Equity in School Funding: A Case Study for Kansas," International Advances in Economic Research, Springer, Springer, vol. 14(2), pages 228-241, May.
    12. Guesmi, Bouali & Serra, Teresa & Featherstone, Allen M., 2013. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 147488, Agricultural and Applied Economics Association.

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