Cover; Abstract; Contents; I. Introduction; II. A Selective Review of the Research Assessing Education Spending Efficiency; III. Empirical Analysis; A. An Overview of the Education Sector; Tables; 1. Selected Education and Social Indicators; B. The Hybrid Methodology; Figures; 1. Education Input and Output; 2. Grid Search; 2. Grid Search Outcome; 3. Hybrid Frontier; 4. Probability Distribution of Potential Gains; 5. The Role of GDP Per Capita; C. Results; D. Sensitivity Analysis; 6. Potential Gains; 3. Efficiency Scores; 7. Average Potential Gain; E. Second-Stage Analysis; 8. Rank Correlation
4. Pair-Wise Correlations with Efficiency Scores5. Truncated Regressions; IV. Conclusions; References
Summary
The measurement of the efficiency of public education expenditure using parametric and non-parametric methods has proven challenging. This paper seeks to overcome the difficulties of earlier studies by using a hybrid approach to measure the efficiency of secondary education spending in emerging and developing economies. The approach accounts for the impact of the level of development on education outcomes by constructing different efficiency frontiers for lower- and higher-income economies. We find evidence of large potential gains in enrollment rates by improving efficiency. These are largest
