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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Kalyan Chakraborty & Basudeb Biswas & W. Cris Lewis, 2001. "Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 889-905, April.
  • Handle: RePEc:sej:ancoec:v:67:4:y:2001:p:889-905
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    Citations

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    Cited by:

    1. Kristof de Witte & Laura López-Torres, 2015. "Efficiency in Education. A Review of Literature and a Way Forward," Working Papers 1501, Departament Empresa, Universitat Autònoma de Barcelona, revised Apr 2015.
    2. Ligia Alba Melo-Becerra & Lucas Wilfried Hahn-De-Castro & Dalma Sofía Ariza-Hernández & Cristian Oswaldo Carmona-Sanchez, 2016. "El desempeño municipal en el sector educativo: un análisis a partir de una función multiproducto," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL Y URBANA 015017, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    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, vol. 3, pages 21-34.
    4. Ryan, Chris, 2013. "What is behind the decline in student achievement in Australia?," Economics of Education Review, Elsevier, vol. 37(C), pages 226-239.
    5. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    6. Pierre Ouellette & Valérie Vierstraete, 2010. "Malmquist indexes with quasi-fixed inputs: an application to school districts in Québec," Annals of Operations Research, Springer, vol. 173(1), pages 57-76, January.
    7. CORDERO FERRERA, José Manuel & CRESPO CEBADA, Eva & SANTÍN GONZÁLEZ, Daniel, 2010. "Factors Affecting Educational Attainment: Evidence From Spanish Pisa 2006 Results," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(3).
    8. Ng'ombe, John & Kalinda, Thomson, 2015. "A Stochastic Frontier Analysis of Technical Efficiency of Maize Production Under Minimum Tillage in Zambia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 4(2).
    9. José Manuel Cordero Ferrera & Eva Crespo Cebada & Francisco Pedraja & Rosa Simancas Rodríguez, 2011. "El rendimiento educativo y sus determinantes según PISA: Una revisión de la literatura en España," Investigaciones de Economía de la Educación volume 6,in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 2, pages 40-56 Asociación de Economía de la Educación.
    10. repec:kap:iaecre:v:14:y:2008:i:2:p:228-241 is not listed on IDEAS
    11. Ahmad Nawaz, 2010. "Efficiency and Productivity of Microfinance: Incorporating the Role of Subsidies," Working Papers CEB 10-009.RS, ULB -- Universite Libre de Bruxelles.
    12. Kalyan Chakraborty & John Poggio, 2008. "Efficiency and Equity in School Funding: A Case Study for Kansas," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(2), pages 228-241, May.
    13. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers 200703, Middle Tennessee State University, Department of Economics and Finance.
    14. 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 0804, Socioeconomic Institute - University of Zurich, revised Dec 2010.
    15. Daghbashyan, Zara, 2009. "Do university units differ in the efficiency of resource utilization?," Working Paper Series in Economics and Institutions of Innovation 176, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 17 Dec 2012.
    16. 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.
    17. Ligia Alba Melo-Becerra & Lucas Wilfried Hahn-De-Castro & Dalma Sofía Ariza-Hernández & Cristian Oswaldo Carmona-Sanchez, 2016. "Efficiency of Public Education in a Multiproduct Context: The Case of Colombian Municipalities," Borradores de Economia 979, Banco de la Republica de Colombia.
    18. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    19. 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, vol. 25(1), pages 77-90, February.
    20. Eduardo Minuci & Amir B. Ferreira Neto & Joshua Hall, 2017. "Efficiency, But At What Cost? Evidence from a DEA Analysis of WV School Districts," Working Papers 17-28, Department of Economics, West Virginia University.
    21. Guesmi, Bouali & Serra, Teresa & Radwan, Amr & Gil, José María, 2014. "Efficiency of Egyptian Organic Agriculture: a Local Maximum Likelihood Approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183023, European Association of Agricultural Economists.
    22. Luis Alejandro Lopez-Agudo & Oscar David Marcenaro Gutierrez, 2016. "Identifying effective teachers: The case study of Spain," Investigaciones de Economía de la Educación volume 11,in: José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), Investigaciones de Economía de la Educación 11, edition 1, volume 11, chapter 18, pages 349-366 Asociación de Economía de la Educación.
    23. 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, vol. 176(1), pages 521-533, January.

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