Public School Resources in Rural Communities: An Examination of Size Economies in Eastern Nebraska Public School Districts

Kenneth W. Forsythe, John F. Yanagida and Bruce B. Johnson

Review of Agricultural Economics, 1988, vol. 10, issue 2, 293-299

Abstract: An average total cost function for 53 selected public school districts in Eastern Nebraska over the time period 1981–84 is estimated. A quality of educational services index is developed and used to account for quality differences between school districts over time. Using a covariance model to pool time series and cross-sectional data, significant economies of size were found. The empirical findings also are discussed in regard to the issue of school consolidation.

Date: 1988
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