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Competition and Public School Efficiency in Sweden

  • Waldo, Staffan


    (Swedish Institute for Food and Agricultural Economics)

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    The focus in this study is on how efficiency in public education is affected by competition from private schools. The Swedish educational system is used, since the Swedish large scale voucher program implies that private and public schools compete on similar terms. In 2002 approximately 5% of the Swedish children attended private schools, and the share is rapidly increasing. Public school efficiency is estimated using Data Envelopment Analysis (DEA). Modelling education is difficult since educational production is not only dependent on factors under control of the school management, but also on the students’ socio-economic backgrounds. A number of approaches have been proposed concerning how to model this in a DEA setting. In this study, four different approaches are used and compared. Special focus is put on a second stage regression, where the efficiency estimates are regressed on competition and other explanatory variables. We can not show that the share of children attending private schools is related to public school performance.

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    Paper provided by Lund University, Department of Economics in its series Working Papers with number 2006:7.

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    Length: 27 pages
    Date of creation: 23 Mar 2006
    Date of revision:
    Handle: RePEc:hhs:lunewp:2006_007
    Contact details of provider: Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
    Phone: +46 +46 222 0000
    Fax: +46 +46 2224613
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    1. Couch, Jim F & Shughart, William F, II & Williams, Al L, 1993. " Private School Enrollment and Public School Performance," Public Choice, Springer, vol. 76(4), pages 301-12, August.
    2. Grosskopf, Shawna & Hayes, Kathy J. & Taylor, Lori L. & Weber, William L., 2001. "On the Determinants of School District Efficiency: Competition and Monitoring," Journal of Urban Economics, Elsevier, vol. 49(3), pages 453-478, May.
    3. Newmark, Craig M, 1995. " Another Look at Whether Private Schools Influence Public School Quality: Comment," Public Choice, Springer, vol. 82(3-4), pages 365-73, March.
    4. 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.
    5. William Sander, 1999. "Private Schools and Public School Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 697-709.
    6. Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February.
    7. 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.
    8. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    9. 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.
    10. Bradley, Steve & Johnes, Geraint & Millington, Jim, 2001. "The effect of competition on the efficiency of secondary schools in England," European Journal of Operational Research, Elsevier, vol. 135(3), pages 545-568, December.
    11. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    12. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
    13. Muniz, M. A., 2002. "Separating managerial inefficiency and external conditions in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(3), pages 625-643, December.
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