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Competition and Public School Efficiency in Sweden

Author

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  • Waldo, Staffan

    () (Swedish Institute for Food and Agricultural Economics)

Abstract

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.

Suggested Citation

  • Waldo, Staffan, 2006. "Competition and Public School Efficiency in Sweden," Working Papers 2006:7, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2006_007
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    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP06_7.pdf
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    References listed on IDEAS

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    1. 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.
    2. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    3. 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.
    4. 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.
    5. 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 679-685, May.
    6. 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 301-312, August.
    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.
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    11. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    12. 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.
    13. William Sander, 1999. "Private Schools and Public School Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 697-709.
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    More about this item

    Keywords

    Data Envelopment Analysis; competition; education;

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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