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Efficiency of investment in compulsory education: An Overview of Methodological Approaches

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  • Tommaso Agasisti

    () (Politecnico di Milano School of Management Department of Management, Economics and Industrial Engineering)

  • Giuseppe Munda

    () (European Commission - JRC)

Abstract

The policy discourses often refer to the term "efficiency" for indicating the necessity of reducing resources devoted to interventions and whole sub-sectors, while keeping the output produced constant. In this technical report, we review the theoretical and empirical foundations of efficiency analysis as applicable to the educational policy. After introducing some key concepts and definitions (technical, allocative, spending and scale efficiency), the report illustrates which variables of inputs, outputs and contextual factors are used in applied studies that assess efficiency in compulsory education. Then, an explanation of methods for conducting efficiency studies is proposed; in particular frontier methods such as non-parametric approaches (as Data Envelopment Analysis) and parametric models (as Stochastic Frontier Analysis) and multi-criteria approaches (such as Multi-Objective Optimisation and Discrete Methods) are reviewed. The main objective of this report is to present to the interested reader the main technical tools which can be applied for carrying out real-world efficiency analyses. A tween report presents an application of efficiency analysis for European compulsory education, at country level.

Suggested Citation

  • Tommaso Agasisti & Giuseppe Munda, 2017. "Efficiency of investment in compulsory education: An Overview of Methodological Approaches," JRC Working Papers JRC106681, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc106681
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    1. Tommaso Agasisti & Ralph Hippe & Giuseppe Munda, 2017. "Efficiency of investment in compulsory education: empirical analyses in Europe," JRC Working Papers JRC106678, Joint Research Centre (Seville site).

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    More about this item

    Keywords

    Compulsory Education; Human Capital; Efficiency Analysis; Data Envelopment Analysis; Multiple-Criteria Evaluation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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