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Estimating technical and allocative efficiency in the public sector: A nonparametric analysis of Dutch schools

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  • Haelermans, Carla
  • Ruggiero, John

Abstract

Public sector output provision is influenced not only by discretionary inputs but also by exogenous environmental factors. In this paper, we extended the literature by developing a conditional DEA estimator of allocative efficiency that allows a decomposition of overall cost efficiency into allocative and technical components while simultaneously controlling for the environment. We apply the model to analyze technical and allocative efficiency of Dutch secondary schools. The results reveal that allocative efficiency represents a significant 37 percent of overall cost efficiency on average, although technical inefficiency is still the dominant part. Furthermore, the results show that the impact of environment largely differs between schools and that having a more unfavorable environment is very expensive to schools. These results highlight the importance of including environmental variables in both technical and allocative efficiency analysis.

Suggested Citation

  • 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, vol. 227(1), pages 174-181.
  • Handle: RePEc:eee:ejores:v:227:y:2013:i:1:p:174-181
    DOI: 10.1016/j.ejor.2012.12.004
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    14. Luque, Mariano & Marcenaro-Gutierrez, Oscar D. & Ruiz, Ana B., 2020. "Evaluating the global efficiency of teachers through a multi-criteria approach," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
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    17. Blackburn, Vincent & Brennan, Shae & Ruggiero, John, 2014. "Measuring efficiency in Australian Schools: A preliminary analysis," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 4-9.
    18. Tommaso Agasisti, 2014. "How does schools’ efficiency look like across Europe? An empirical analysis of Germany, Spain, France, Italy and UK using OECD PISA2012 data," Working papers 9, Società Italiana di Economia Pubblica.
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    21. Carla Haelermans & John Ruggiero, 2017. "Non-parametric estimation of the cost of adequacy in education: the case of Dutch schools," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 390-398, April.
    22. Paola Azar & Federico González & Leonel Muinelo-Gallo, 2018. "The efficiency of Uruguayan secondary schools: Evidence based on PISA 2015 data," Documentos de Trabajo (working papers) 18-14, Instituto de Economia - IECON.
    23. Jie Wu & Dacheng Huang & Zhixiang Zhou & Qingyuan Zhu, 2020. "The regional green growth and sustainable development of China in the presence of sustainable resources recovered from pollutions," Annals of Operations Research, Springer, vol. 290(1), pages 27-45, July.
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    25. Yahia, F.B. & Essid, H., 2019. "Determinants of Tunisian Schools’ Efficiency: A DEA-Tobit Approach," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(1), pages 44-56, February.

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