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Efficiency of Educational Production: An Analysis of New York School Districts

John Ruggiero
The Review of Economics and Statistics
Vol. 78, No. 3 (Aug., 1996), pp. 499-509
Published by: The MIT Press
DOI: 10.2307/2109797
Stable URL: http://www.jstor.org/stable/2109797
Page Count: 11
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Efficiency of Educational Production: An Analysis of New York School Districts
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Abstract

Theoretical consideration of technical efficiency has existed since Koopmans (1951), which defined technical efficiency for production possibilities for which it is impossible to increase any output without simultaneously increasing any input. The nonparametric approach to efficiency estimation is based not on this definition but rather on Farrell's index. Even after Farrell efficiency is achieved there may exist additional slack in individual inputs, implying that Farrell efficiency doesn't measure inefficiency. To solve this problem, this paper suggests incorporating programming results into a second-stage multivariate regression analysis. For illustrative purposes, this technique is applied to analyze New York State school districts.

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