Journal Article

Anticipating the Consequences of School Reform: A New Use of DEA

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

1999

Overview

We use DEA-type linear programming techniques to simulate a basic component of educational reform-eliminating restrictions on the allocation of school personnel. Our technique allows us to identify potential output gains (or equivalently potential cost savings) from reform. We can also identify which personnel groups are likely to gain and lose under this reform. When we apply our model to a sample of Texas school districts, we find evidence that the educational establishment has substantial economic rents to protect from school reform, and that the primary beneficiaries of reform are likely to be affluent school districts with few minority students. The technique, which relies on the relationship between the direct and indirect distance functions, can be easily generalized to measure the potential gains from removing other input restrictions such as union work rules, environmental regulations, or deed restrictions.

• Publisher: INFORMS,Institute for Operations Research and the Management Sciences
• Subject: Academic achievement / Applied sciences / Budget constraints / data envelopment analysis / Decision theory. Utility theory / Distance functions / Economic performance / Economics of education / Education reform / Educational reform / Employment / Exact sciences and technology / input deregulation / Input prices / Market prices / Mathematical programming / measuring economic rents / measuring potential gains from reform / Operational research and scientific management / Operational research. Management science / Potential output / School districts / school efficiency / school reform / Schools / Teachers