Assessing Technical Efficiency in the Provision of Elementary Education Across Indian States

Jyotsna Rosario and K. R. Shanmugam
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Jyotsna Rosario: Jyotsna Rosario (corresponding author) is an Assistant Professor at Vidyashilp University, Bangalore, Karnataka, India. E-mail: jyotsna.rosario@vidyashilp.edu.in
K. R. Shanmugam: K. R. Shanmugam is former Director of Madras School of Economics, Chennai, Tamil Nadu, India.

Margin: The Journal of Applied Economic Research, 2024, vol. 18, issue 1-2, 160-180

Abstract: This article assesses the technical efficiency of 28 Indian states in delivering elementary education between 2009–2010 and 2020–2021, using the stochastic frontier model developed by Battese and Coelli. The findings indicate that technical inefficiency accounts for 82 per cent of the interstate disparities in elementary education output. Factors such as public expenditure, schooling infrastructure and the presence of qualified teachers positively impact output. However, the effect of public expenditure diminishes beyond a certain threshold. Higher literacy rates, increased urbanisation and a greater proportion of government schools improve efficiency. Conversely, a higher percentage of scheduled caste and scheduled tribe children and the appointment of contractual teachers decrease efficiency. The overall technical efficiency stands at 79 per cent. Efficiency varies widely across states, ranging from 52 per cent to 94.5 per cent. Goa, Haryana and Kerala demonstrate the highest efficiency, while Arunachal Pradesh, Meghalaya and Manipur rank the lowest. Some states have seen improvements in efficiency, while others have experienced declines. These findings suggest that resource-poor states can benefit from increased public expenditure, whereas efficient resource utilisation is crucial for states facing inefficiencies. This article provides essential insights for policymakers to address regional imbalances and enhance elementary education outcomes. JEL Codes : H52, I21, I22, I28, C14, D24

Keywords: Technical Efficiency; Public Expenditure; Elementary Education; Stochastic Frontier Analysis (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:18:y:2024:i:1-2:p:160-180

DOI: 10.1177/00252921241295279

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