School competition and efficiency in elementary schools in Mexico. (January 2016)

• Record Type: Journal Article
• Authors: Garcia-Diaz, Rocio; del Castillo, Ernesto; Cabral, René
• Is Part Of: International journal of educational development. Volume 46(2016)
• Page Start: 23
• Page End: 34
• Publication Date: 2016-01
• Subjects: Competition -- Stochastic production frontier -- Efficiency -- Spatial analysis -- Panel data; I21 -- I22 -- D24 -- R12; Education -- Periodicals; Education -- Social aspects -- Periodicals; Education -- Economic aspects -- Periodicals; Education -- Periodicals; Éducation -- Périodiques; Education; Periodicals; 370.11
• DOI: 10.1016/j.ijedudev.2015.09.015
• Languages: English
• ISSNs: 0738-0593

Abstract

Abstract: This paper examines how competition impacts the technical efficiency of schools. We model competition between schools using Geographical Information System (GIS) tools in order to develop a Herfindahl–Hirschman market concentration index (HHI) and then follow a stochastic frontier analysis with alternative specifications that enable us to obtain the best unbiased efficient estimators. We find three important results. First, a higher degree of competition from public and private schools significantly increases elementary school efficiency in Mexico, as measured by the outcomes in a nationwide standardized test. Second, we find a positive, though small, association between expenditure on education and school outputs. Third, private schools perform significantly better due to the differential incentives they face in terms of competition.