Assessment of size effects on efficiency

Abstract

This paper assessed size effects on efficiency using a nonparametric technique, data envelopment analysis and a Tobit regression analysis, respectively, for public upper secondary schools in Northern Thailand. Results show that school size contributes positively to both urban and rural schools, while class size has a positive effect on urban schools and a negative one on rural schools. A sensitivity analysis reveals the stability of class size and school size effects on efficiency. Policy to improve school efficiency should thus focus on expanding school size while reducing class size for rural schools. © Springer Science+Business Media B.V. 2008.