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The Cost of Public Schooling in New York State: The Role of Scale and Efficiency in 1978-79

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  • Richard J. Butler
  • David H. Monk

Abstract

Cost differentials between large and small school districts are decomposed into scale and efficiency effects. The analysis shows that scale economies enjoyed by large districts can come at the expense of the efficient production of educational outcomes. Attention is focused on the possible loss of efficiency associated with efforts to increase size by closing schools and consolidating school districts. Empirical evidence from New York State is presented which shows that lower levels of efficiency exist in large compared to small school districts. Implications for policy are explored.

Suggested Citation

  • Richard J. Butler & David H. Monk, 1985. "The Cost of Public Schooling in New York State: The Role of Scale and Efficiency in 1978-79," Journal of Human Resources, University of Wisconsin Press, vol. 20(3), pages 361-382.
    • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:3:p:361-382
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    Cited by:

    1. Rajiv Banker & Surya Janakiraman & Ram Natarajan, 2002. "Evaluating the Adequacy of Parametric Functional Forms in Estimating Monotone and Concave Production Functions," Journal of Productivity Analysis, Springer, vol. 17(1), pages 111-132, January.
    2. Colegrave, Andrew D. & Giles, Margaret J., 2008. "School cost functions: A meta-regression analysis," Economics of Education Review, Elsevier, vol. 27(6), pages 688-696, December.
    3. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    4. Devaraj, Srikant & Faulk, Dagney & Hicks, Michael, 2018. "School District Size and Student Performance," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), August.
    5. Banker, Rajiv D. & Janakiraman, Surya & Natarajan, Ram, 2004. "Analysis of trends in technical and allocative efficiency: An application to Texas public school districts," European Journal of Operational Research, Elsevier, vol. 154(2), pages 477-491, April.
    6. Jos L. T. Blank & Thomas K. Niaounakis, 2019. "Managing Size of Public Schools and School Boards: A Multi-Level Cost Approach Applied to Dutch Primary Education," Sustainability, MDPI, vol. 11(23), pages 1-11, November.
    7. K. Chakraborty & B. Biswas & WC. Lewis, 2000. "Economies of scale in public education: an econometric analysis," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 238-247, April.
    8. Rhys Andrews, 2012. "Local Government Size and Efficiency in Labour Intensive Public Services: Evidence from Local Educational Authorities in England," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1214, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    9. Juan Luis Gómez-Reino & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2021. "Evidence on Economies of Scale in Local Public Service Provision: A Meta-Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2116, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Rhys Andrews, 2013. "Local government size and efficiency in labor-intensive public services: evidence from local educational authorities in England," Chapters, in: Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), The Challenge of Local Government Size, chapter 7, pages 171-188, Edward Elgar Publishing.
    11. Gonzalo Sanz-Magallon-Rezusta & Manuel M. Molina-Lopez & Pilar Melendo-Matias, 2017. "Economies of Scale in Private and Charter Spanish Schools Under an Ownership and Management Perspective," ACTA VSFS, University of Finance and Administration, vol. 11(1), pages 7-27.
    12. Jacques, Charles & Brorsen, B. Wade & Richter, Francisca G. C., 2000. "Consolidating Rural School Districts: Potential Savings and Effects on Student Achievement," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(3), pages 573-583, December.
    13. Brorsen, B. Wade & Jacques, Charles, 1997. "The Effects of Historical Settlement Patterns on Oklahoma Student Achievement Test Scores," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35858, Western Agricultural Economics Association.
    14. Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.

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