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Value Added and Contextual Factors in Education: Evidence from Chilean Chools


  • Thieme Claudio

    () (Universidad Diego portales)

  • Prior Diego

    () (Universidad Autónoma de Barcelona)

  • Tortosa-Ausina Emili


  • Gempp René

    () (Diego Portales University)


There is consensus in the literature about the need to control for socioeconomic status and other contextual variables at student and school level in the estimation of value added models, for which methodologies rely on hierarchical linear models. However, this approach is problematic because the nature of their estimate is a comparison with a school mean, implying no real incentive for performance excellence. Meanwhile, activity analysis models recently developed to estimate school value added have been unable to control for contextual variables. We propose a robust frontier model to estimate contextual value added which integrates recent advances in the activity analysis literature. We provide an application to a sample of schools in Chile, where reforms have been made in the educational system focusing on the need for accountability measures. Results indicate the general relevance of including contextual variables, and explain the performance differentials found for the three school types.

Suggested Citation

  • Thieme Claudio & Prior Diego & Tortosa-Ausina Emili & Gempp René, 2013. "Value Added and Contextual Factors in Education: Evidence from Chilean Chools," Working Papers 2013129, Fundacion BBVA / BBVA Foundation.
  • Handle: RePEc:fbb:wpaper:2013129

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    References listed on IDEAS

    1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    2. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    3. Horváth, Roman, 2013. "Does trust promote growth?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 777-788.
    4. Marcel Fafchamps, 2006. "Development and social capital," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1180-1198.
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    More about this item


    Efficiency; order-m; school effectiveness; value added.;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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