IDEAS home Printed from https://ideas.repec.org/p/ags/aaea01/20632.html
   My bibliography  Save this paper

Measuring Production Efficiency Using Aggregate Data

Author

Listed:
  • Richter, Francisca G.-C.
  • Brorsen, B. Wade

Abstract

This paper develops a measure of efficiency when data have been aggregated. Unlike the most commonly used efficiency measures, our estimator handles the heteroskedasticity created by aggregation appropriately. Our estimator is compared to estimators currently used to measure school efficiency. Theoretical results are supported by a Monte Carlo experiment. Results show that for samples containing small schools (sample average may be about 100 students per school but sample includes several schools with about 30 students), the proposed aggregate data estimator performs better than the commonly used OLS and only slightly worse than the multilevel estimator. Thus, when school officials are unable to gather multilevel or disaggregate data, the aggregate data estimator proposed here should be used. When disaggregate data is available, standardizing the value-added estimator should be considered.

Suggested Citation

  • Richter, Francisca G.-C. & Brorsen, B. Wade, 2001. "Measuring Production Efficiency Using Aggregate Data," 2001 Annual meeting, August 5-8, Chicago, IL 20632, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20632
    DOI: 10.22004/ag.econ.20632
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20632/files/sp01ri04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.20632?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hanushek, Eric A & Rivkin, Steven G & Taylor, Lori L, 1996. "Aggregation and the Estimated Effects of School Resources," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 611-627, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Machado, Matilde P., 2001. "Dollars and performance: treating alcohol misuse in Maine," Journal of Health Economics, Elsevier, vol. 20(4), pages 639-666, July.
    2. Barrow, Lisa & Rouse, Cecilia Elena, 2004. "Using market valuation to assess public school spending," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1747-1769, August.
    3. Gordon Dahl, 2010. "Early teen marriage and future poverty," Demography, Springer;Population Association of America (PAA), vol. 47(3), pages 689-718, August.
    4. Maria Iacovou, 2002. "Class Size in the Early Years: Is Smaller Really Better?," Education Economics, Taylor & Francis Journals, vol. 10(3), pages 261-290.
    5. Anne Case & Motohiro Yogo, 1999. "Does School Quality Matter? Returns to Education and the Characteristics of Schools in South Africa," NBER Working Papers 7399, National Bureau of Economic Research, Inc.
    6. Uwe Sunde & Thomas Dohmen & Benjamin Enke & Armin Falkbriq & David Huffman & Gerrit Meyerheim, 2022. "Patience and Comparative Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(5), pages 2806-2840.
    7. George M. Holmes, "undated". "Does school choice increase school quality?," Working Papers 0106, East Carolina University, Department of Economics.
    8. Leung, Charles Ka Yui & Shi, Song & Ho Tang, Edward Chi, 2013. "Commodity house prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 875-887.
    9. Haughwout, Andrew F., 2002. "Public infrastructure investments, productivity and welfare in fixed geographic areas," Journal of Public Economics, Elsevier, vol. 83(3), pages 405-428, March.
    10. Justin L. Tobias & Mingliang Li, 2003. "A finite-sample hierarchical analysis of wage variation across public high schools: evidence from the NLSY and high school and beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 315-336.
    11. Harvy Vivas Pacheco, 2009. "Educación, desigualdad y democracia," Revista Sociedad y Economía, Universidad del Valle, CIDSE, February.
    12. Wehn-Jyuan Tsai & Jin-Tan Liu & James Hammitt, 2011. "Aggregation Biases in Estimates of the Value per Statistical Life: Evidence from Longitudinal Matched Worker-Firm Data in Taiwan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(3), pages 425-443, July.
    13. Eric A. Hanushek & Steven G. Rivkin, 1996. "Understanding the 20th Century Growth in U.S. School Spending," NBER Working Papers 5547, National Bureau of Economic Research, Inc.
    14. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Chi Ho Tang, 2020. "Why is the Hong Kong housing market unaffordable? Some stylized facts and estimations," ISER Discussion Paper 1081, Institute of Social and Economic Research, The University of Osaka.
    15. Francisca Richter & B. Brorsen, 2006. "Aggregate Versus Disaggregate Data in Measuring School Quality," Journal of Productivity Analysis, Springer, vol. 25(3), pages 279-289, June.
    16. Kevin C. Bastian & Gary T. Henry & Charles L. Thompson, 2013. "Incorporating Access to More Effective Teachers into Assessments of Educational Resource Equity," Education Finance and Policy, MIT Press, vol. 8(4), pages 560-580, October.
    17. Dustmann, C. & Rajah, N. & van Soest, A.H.O., 1998. "School Quality, Exam Performance and Career Choice," Other publications TiSEM a00aaabe-3eb5-4c67-8d1a-2, Tilburg University, School of Economics and Management.
    18. repec:ris:msuecw:2023_001 is not listed on IDEAS
    19. Christian Dustmann & Arthur Soest, 2008. "Part-time work, school success and school leaving," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 23-45, Springer.
    20. Christian E. Weller, 2011. "What Does the Literature Tell Us About the Possible Effect of Changing Retirement Benefits on Public Employee Effectiveness?," Working Papers wp270, Political Economy Research Institute, University of Massachusetts at Amherst.
    21. Arline T. Geronimus & John Bound & Lisa J. Neidert, 1995. "On the Validity of Using Census Geocode Characteristics to Proxy Individual Socioeconomic Characteristics," NBER Technical Working Papers 0189, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Productivity Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea01:20632. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.