Hostname: page-component-78c5997874-mlc7c Total loading time: 0 Render date: 2024-11-10T16:31:56.308Z Has data issue: false hasContentIssue false

Monitoring Inefficiency in Public Education

Published online by Cambridge University Press:  28 April 2015

Yoshie Saito
Affiliation:
Department of Accounting, Fox School of Business and Management, Temple University, Philadelphia, PA
Christopher S. McIntosh
Affiliation:
Agricultural Economics and Rural Sociology, University of Idaho, Idaho Falls, ID

Abstract

The efficiency of public education is examined using a cost indirect output distance function. Efficiency estimates are obtained using data envelopment analysis applied to data from Georgia public schools. Georgia school districts utilize educational budgets with reasonable efficiency, achieving an overall efficiency of 98% with a range of 93%–100%. If all school districts were 100% efficient, outputs could be expanded 2%. This could be achieved by increasing funding $75.46 million state-wide in total for each of the 3 years. From the consumers' (voters') point of view, this result suggests that inefficiency costs Georgia, on average, a total of $226.38 million from 1994 to 1996.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 2003

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Benabou, R.Equity and Efficiency in Human Capital Investment: The Local Connection.Review of Economic Studies 63(April 1996):237264.CrossRefGoogle Scholar
Benabou, R.. “Heterogeneity, Stratification, and Growth: Macroeconomic Implications of Community Structure and School Finance.American Economic Review 86, 3(June 1996):584609.Google Scholar
Borjas, G.J.Ethnic Capital and Intergenerational Mobility.Quarterly Journal of Economics CVII, 1(1992):123150.CrossRefGoogle Scholar
Borjas, G.J.. “Ethnicity, Neighborhoods, and Human-Capital Externalities.American Economic Review (1995):365390.Google Scholar
Bryk, A.S., Lee, V.E., and Holland, B.P.. Catholic Schools and the Common Good. Cambridge, MA: Harvard University Press, 1993.CrossRefGoogle Scholar
Card, D., and Krueger, A.B.. “Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States.Journal of Political Economy 10(1992):140.CrossRefGoogle Scholar
Card, D., and Krueger, A.B.. “School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina.Journal of Economic Perspectives 10(1996):3150.CrossRefGoogle Scholar
Chakraborty, K., Biswas, B., and Lewis, W.C.. “Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach.Southern Economic Journal 67(2001):889905.Google Scholar
Charnes, A., Cooper, W.W., and Rhodes, E.. “Measuring the Efficiency of Decision Making Units.European Journal of Operational Research 2(1978):429444.CrossRefGoogle Scholar
Färe, R., Grosskopf, S., and Knox Lovell, C.A.. “An Indirect Approach to the Evaluation of Producer Performance.Journal of Public Economics 37(1988):7189.CrossRefGoogle Scholar
Färe, R., Grosskopf, S., and Weber, W.L.. “Measuring School District Performance.Public Finance Quarterly 17(1985):409428.CrossRefGoogle Scholar
Finn, J.D., and Achilles, C.M.. “Answers and Questions About Class Size: A Statewide Experiment.American Education Research Journal 27(1990):556577.CrossRefGoogle Scholar
Georgia Department of Education, Accountability Unit. Georgia Public Education Report Cards, 1994–95, 1995–96, 1996–97. Internet site: www.doe.k12.ga.us (Accessed 1999-2002).Google Scholar
Grosskopf, S., Hayes, K.J.. Taylor, L.L., and Weber, W.L.. “Budget-Constrained Frontier Measures of Fiscal Equality and Efficiency in Schooling.Review of Economics and Statistics 79(1997):116124.CrossRefGoogle Scholar
Hanushek, A.E.The Economics of Schooling: Production and Efficiency in Public Schools.Journal of Economic Literature 16(1986):11411177.Google Scholar
Hanushek, A.E., and Taylor, L.L.. “Alternative Assessments of the Performance of Schools: Measurement of State Variations in Achievement.Journal of Human Resources 25(1990):179201.CrossRefGoogle Scholar
Hanushek, A.E., Rivkin, S.G., and Taylor, L.L.. “Aggregation and the Estimated Effects of School Resources.Review of Economics and Statistics 78(1996):611627.CrossRefGoogle Scholar
Harris, J.F.In Georgia … Quality Basis Education.NASSP Bulletin 70, 491(1986):36, 3840.CrossRefGoogle Scholar
Johnson, E.G., and Stafford, F.P.. “On the Rate of Return to Schooling Quality.Review of Economics and Statistics 78(1996):686691.CrossRefGoogle Scholar
Loeb, S., and Bound, J.. “The Effect of Measured School Inputs in Academic Achievement: Evidence from the 1920s, 1930s and 1940s Birth Cohorts.Review of Economics and Statistics 78(1996):653663.CrossRefGoogle Scholar
Lovell, C.A., Walters, L.C., and Wood, L.. “Stratified Models of Education Production using Regression Analysis.” Working Paper No. 90-5, Department of Economics, University of North Carolina, Chapel Hill, NC, 1990.Google Scholar
McCarty, A.T., and Yaisawarng, S.. “Technical Efficiency in New Jersey School Districts.The Measurement of Productive Efficiency, Techniques and Applications. Fried, H.O., Lovell, C.A.K., and Schmidt, S.S., eds. New York: Oxford University Press, 1993.Google Scholar
Meyer, H.R.Value-Added Indicators of School Performance: A Primer.Economics of Education Review 16(1997):283301.CrossRefGoogle Scholar
Murnane, R.J., Whillett, J.B., and Levy, F.. “The Growing Importance of Cognitive Skills in Wage Determination.Review of Economics and Statistics 77(1995):251266.CrossRefGoogle Scholar
Prais, S.J., and Houthakker, H.S.. The Analysis of Family Budgets. New York: Cambridge University Press, 1995.Google Scholar
Ray, S.C.Resource-use Efficiency in Public Schools: A Study of Connecticut Data.Management Science 37(1991):16201628.CrossRefGoogle Scholar
Ruggiero, J.On the Measurement of Technical Efficiency in the Public Sector.European Journal of Operational Research 90(1996):553565.CrossRefGoogle Scholar
Sander, W.Catholic High Schools and Rural Academic Achievement.American Journal of Agricultural Economics 79(1997):112.CrossRefGoogle Scholar
Thanassoulis, E.Assessing the Effectiveness of Schools With Pupils of Different Ability Using Data Envelopment Analysis.Journal of the Operational Research Society 47(1996):8497.CrossRefGoogle Scholar
The White House. Internet site: http://www.whitehouse.gov/infocus//compassionate/edu-cation.html (Accessed October 2002).Google Scholar