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

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  • Kalyan Chakraborty
  • Basudeb Biswas
  • W. Cris Lewis

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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  • 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, John Wiley & Sons, vol. 67(4), pages 889-905, April.
    • Handle: RePEc:wly:soecon:v:67:y:2001:i:4:p:889-905
    DOI: 10.1002/j.2325-8012.2001.tb00379.x
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    2. 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.
    3. 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.
    4. Ligia Alba Melo-Becerra & Lucas Wilfried Hahn-De-Castro & Dalma Sofía Ariza-Hernández & Cristian Oswaldo Carmona-Sanchez, 2016. "El desempeno municipal en el sector educativo: un análisis a partir de una función multiproducto," Documentos de Trabajo Sobre Economía Regional y Urbana 15017, Banco de la República, Economía Regional.
    5. Hong Ngoc Nguyen & Christopher O'Donnell, 2021. "Estimating the Cost Efficiency of Public Service Providers in the Presence of Demand Uncertainty," CEPA Working Papers Series WP122021, School of Economics, University of Queensland, Australia.
    6. Mariusz Pyra & Mieczyslaw Adamowicz, 2021. "Assessment of the Sector of Public Vocational Universities in Poland from the Point of View of their Efficiency," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 21-43.
    7. 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.
    8. Bouadam, Kamel & Chiad, Faycal, 2011. "Data Envelopment Analysis To Measure Technical Efficiency In The Algerian Companies," MPRA Paper 113845, University Library of Munich, Germany.
    9. Moonyoung Eom & Hyungchul Yoo & Jisung Yoo, 2022. "Efficiency and Productivity of Local Educational Administration in Korea Using the Malmquist Productivity Index," Mathematics, MDPI, vol. 10(9), pages 1-14, April.
    10. 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.
    11. 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).
    12. Ahmad Nawaz, 2010. "Efficiency and Productivity of Microfinance: Incorporating the Role of Subsidies," Working Papers CEB 10-009.RS, ULB -- Universite Libre de Bruxelles.
    13. Horrace, William C. & Rothbart, Michah W. & Yang, Yi, 2022. "Technical efficiency of public middle schools in New York City," Economics of Education Review, Elsevier, vol. 86(C).
    14. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers 200703, Middle Tennessee State University, Department of Economics and Finance.
    15. 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.
    16. 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.
    17. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.

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