Technical Efficiency Analysis of Education Expenditure in Districts and Cities of East Java Province

Abstract

This study aims to test and analyze the influence of GRDP, population, population squared, decentralization, and life expectancy on the technical efficiency of education expenditure in the districts and cities of East Java Province from 2018 to 2022. This research uses a quantitative approach with two methods. The first method is a non-parametric approach using data envelopment analysis (DEA). The DEA model used is a variable return to scale (VRS) and output-oriented. The second method is a parametric approach using the Tobit panel regression method. The results of the DEA calculation showed that the average level of technical efficiency of education spending in East Java in 2018-2022 was 0.9958. The technical efficiency value shows that education spending in East Java is inefficient. The results of the Tobit panel regression show that GRDP has a significant positive effect on the technical efficiency of education spending, population has a significant negative effect on the technical efficiency of education spending, population squared has a significant positive effect on the technical efficiency of education spending, decentralization does not affect the technical efficiency of education spending, and life expectancy does not affect the technical efficiency of education spending.