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Municipalities as Educational Producers - An Efficiency Approach

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  • Waldo, Staffan

    (Lund University)

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.

Suggested Citation

  • Waldo, Staffan, 2000. "Municipalities as Educational Producers - An Efficiency Approach," Working Papers 2000:19, Lund University, Department of Economics, revised 19 Dec 2001.
    • Handle: RePEc:hhs:lunewp:2000_019
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    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP00_19.pdf
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    References listed on IDEAS

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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 563-578, October.
    2. 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.
    3. 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.
    4. Rolf Färe & Shawna Grosskopf & William L. Weber, 1989. "Measuring School District Performance," Public Finance Review, , vol. 17(4), pages 409-428, October.
    5. 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 1141-1177, September.
    6. 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.
    7. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    8. 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.
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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.
    2. Bernardino Benito & Francisco Bastida & Jose Garcia, 2010. "Explaining differences in efficiency: an application to Spanish municipalities," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 515-528.

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    More about this item

    Keywords

    DEA; municipality; education; school;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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