Measuring School Performance Using Cost Functions
This chapter develops and explores the use of school-level cost functions for estimating school efficiency and differentiating between more- and less-efficient schools. Using data for elementary and middle schools in the state of Ohio, we explore a range of specifications and the resulting efficiency measures. The next section presents and overview of the literature on education cost functions. In the third section we present the theory of cost functions, and in the fourth section we describe the data. The fifth section provides estimation results, and the chapter concludes in the fifth section with implications and lessons for future research.