Working Papers, Department of Economics, Lund University
Municipalities as Educational Producers - An Efficiency Approach
Abstract: This paper studies efficiency in the provision of public
education by local authorities using Data Envelopment Analysis (DEA).
Viewing education as a multilevel production process the models control for
differences at other levels. Most important is the students' socioeconomic
backgound and a number of alternative ways of modelling this are proposed.
Mean efficiency is estimated to between 0.87 and 0.96. To explain the
efficiency we use the estimated scores as dependent variable in a Tobit
regression. The primary findings are that municipalities with a socialistic
majority in the city council are less efficient, that the share of teachers
having a permanent tenure increases efficiency significantly which empasize
the importance of employment contracts and, contrary to our expectations,
that municipalities with many pedagogially skilled teachers are less
efficient. We find no evidence of efficiency increases due to competition
from private schools.
Keywords: DEA; municipality; education; school; (follow links to similar papers)
JEL-Codes: I21; (follow links to similar papers)
30 pages, November 8, 2000, Revised December 19, 2001
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