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Municipalities as Educational Producers - An Efficiency Approach

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  • Waldo, Staffan

    ()
    (Lund University)

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    Abstract

    This paper studies efficiency in the provision of public education by local authorities using Data Envelopment Analysis (DEA). Viewing education as a multilevel production process the models control for differences at other levels. Most important is the students' socioeconomic backgound and a number of alternative ways of modelling this are proposed. Mean efficiency is estimated to between 0.87 and 0.96. To explain the efficiency we use the estimated scores as dependent variable in a Tobit regression. The primary findings are that municipalities with a socialistic majority in the city council are less efficient, that the share of teachers having a permanent tenure increases efficiency significantly which empasize the importance of employment contracts and, contrary to our expectations, that municipalities with many pedagogially skilled teachers are less efficient. We find no evidence of efficiency increases due to competition from private schools.

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    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP00_19.pdf
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    Bibliographic Info

    Paper provided by Lund University, Department of Economics in its series Working Papers with number 2000:19.

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    Length: 30 pages
    Date of creation: 08 Nov 2000
    Date of revision: 25 Apr 2001
    Handle: RePEc:hhs:lunewp:2000_019

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    Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
    Phone: +46 +46 222 0000
    Fax: +46 +46 2224613
    Web page: http://www.nek.lu.se/en
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    Related research

    Keywords: DEA; municipality; education; school;

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    References

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    1. Bera, Anil K & Jarque, Carlos M & Lee, Lung-Fei, 1984. "Testing the Normality Assumption in Limited Dependent Variable Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 563-78, October.
    2. Duncombe, William & Miner, Jerry & Ruggiero, John, 1997. " Empirical Evaluation of Bureaucratic Models of Inefficiency," Public Choice, Springer, vol. 93(1-2), pages 1-18, October.
    3. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
    4. Rolf Färe & Shawna Grosskopf & William L. Weber, 1989. "Measuring School District Performance," Public Finance Review, , vol. 17(4), pages 409-428, October.
    5. Olesen, O. B. & Petersen, N. C., 1995. "Incorporating quality into data envelopment analysis: a stochastic dominance approach," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 117-135, April.
    6. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William L. Weber, 1997. "Budget-Constrained Frontier Measures Of Fiscal Equality And Efficiency In Schooling," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 116-124, February.
    7. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William L. Weber, 1999. "Anticipating the Consequences of School Reform: A New Use of DEA," Management Science, INFORMS, vol. 45(4), pages 608-620, April.
    8. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
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    Cited by:
    1. Djily Diagne, 2006. "Mesure de l'efficience technique dans le secteur de l'éducation: une application de la méthode DEA," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(II), pages 231-262, June.

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