Budget-Constrained Frontier Measures Of Fiscal Equality And Efficiency In Schooling

Shawna Grosskopf, Kathy J. Hayes, Lori Taylor and William L. Weber

The Review of Economics and Statistics, 1997, vol. 79, issue 1, 116-124

Abstract: Equality and efficiency are key issues in educational reform. Here the authors analyze the efficiency and equality consequences of various school finance reforms using a cost-indirect output distance function. This function readily models multiple-output production under conditions of budgetary constraint, and provides a natural measure of performance that is closely related to Farrell-type measures of efficiency. The analysis suggests that despite school district inefficiency, finance reforms can affect student achievement. However, any potential gains in output from redistribution are dwarfed by the potential gains from increased efficiency. More strikingly, the analysis demonstrates that budgetary reforms designed to equalize expenditures could actually increase the inequality of student achievement. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 1997
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Related works:
Working Paper: Budget constrained frontier measures of fiscal equality and efficiency in schooling (1992)
Working Paper: Budget Constrained Frontier Measures of Fiscal Equality and Efficiency in Schooling (1992)
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