2001
DOI: 10.2307/1061576
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Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach

Abstract: This paper uses both the stochastic and nonstochastic production function approach to measure technical efficiency in public education in Utah. The stochastic specification estimates technical efficiency, assuming half normal and exponential distributions. The nonstochastic specification uses two-stage DEA to separate the effects of fixed inputs on the measure of technical efficiency. The empirical analysis shows substantial variation in efficiency among school districts. While these measures are insensitive t… Show more

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Cited by 70 publications
(54 citation statements)
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“…The two methods are data envelopment analysis (DEA) and stochastic frontier method or analysis. The former is a nonparametric approach that developed out of mathematical programming techniques while the latter is a parametric approach that estimates technical efficiency within a stochastic production function model (Chakraborty et al, 2001). In this study, the stochastic frontier analysis was used in preference to the DEA framework because it posseses the following attractive features that make it worthy to be used as an alternative to the DEA framework (Greene, 2008).…”
Section: The Stochastic Frontier Analysismentioning
confidence: 99%
“…The two methods are data envelopment analysis (DEA) and stochastic frontier method or analysis. The former is a nonparametric approach that developed out of mathematical programming techniques while the latter is a parametric approach that estimates technical efficiency within a stochastic production function model (Chakraborty et al, 2001). In this study, the stochastic frontier analysis was used in preference to the DEA framework because it posseses the following attractive features that make it worthy to be used as an alternative to the DEA framework (Greene, 2008).…”
Section: The Stochastic Frontier Analysismentioning
confidence: 99%
“…There are several methods both parametric and non-parametric developed over the years to address this issue directly or indirectly. Each of these techniques has its own advantages and disadvantages as discussed in detail by Chakraborty et al (2001) and Murillo-Zamorano (2004). The most use non-parametric techniques are two-stage DEA and value added DEA; and the most use parametric technique is stochastic frontier production function.…”
Section: The Backgroundmentioning
confidence: 99%
“…The most use non-parametric techniques are two-stage DEA and value added DEA; and the most use parametric technique is stochastic frontier production function. (Hoxby, 2000;Grosskopf et al, 1997;Chakraborty et al, 2001;McCarty and Yaisawrang, 1993;Linna, 1998;Duncombe et al, 1997;Kirjavainen and Loikkanen, 1998;Noulas and Ketkar, 1998;Ruggiero and Vitaliano, 1999;Ruggiero, 2001;Saito and McIntosh, 2003;Bishop and Brand, 2003) The past studies recognize that inaccurate identification of production set, improper measure of inputs and outputs, and failure to account for simultaneity in inputs, outputs, and socioeconomic factors can seriously undermine the accuracy and reliability of efficiency estimates (Klien, 2007). This is because it is most likely that the efficiency and the economic performance of school districts are difficult to accurately assess unless the production function is correctly defined in terms of all measurable inputs and outputs.…”
Section: The Backgroundmentioning
confidence: 99%
“…The stochastic specification assumes half and exponential distributions for the inefficiency error term while the deterministic specification uses a two-stage DEA model in which efficiency levels from an output-oriented DEA using controllable school inputs only are regressed on the non school inputs using a Tobit regression model. According to their findings, Chakraborty, Biswas, and Lewis (2001) state that researchers can safely select any of the above methods without great concern for that choice having a large influence on the empirical results.…”
Section: Empirical Evidencementioning
confidence: 99%