Efficiency in Public Education - The role of socio-economic variables

Abstract

This study measures the efficiency of public education using a stochastic frontier model that estimates an educational production function and an inefficiency effects function that controls the socio-economic and environmental factors simultaneously. The model developed by Battese and Coelli (1995) is used in this study and applied to a panel dataset. The study finds that although the mean efficiency scores obtained from the model are lower than the efficiency scores from a conventional stochastic frontier model, the estimates are robust and consistent. The empirical application uses three-year panel data from Kansas school districts and finds that Kansas schools are generally efficient and most of the educational inputs under the control of the school administration are either have a low or no influence on students’ achievement scores. However, students’ socioeconomic factors are found to have significant influence on their achievement scores. JEL