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Quantity, Quality, and Efficiency for a Partially Super-Additive Cost Function: Connecticut Public Schools Revisited (1998)

Ray, Subhash C. ; Mukherjee, Kankana

Springer

Journal of productivity analysis 10 (1998), S. 47-62

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ISSN: 1573-0441

Source: Springer Online Journal Archives 1860-2000

Topics: Economics

Notes: Abstract The dual cost function is partially super-additive when an output quantity bundle of a given quality can be produced at a lower cost by breaking up the output into a number of smaller bundles of the same quality to be produced by several firms instead of the entire bundle being produced by a single firm. In this paper, we build on Maindiratta's concept of size efficiency and propose a nonparametric method using mixed integer programming to measure cost efficiency allowing for partial super-additivity of the cost function. The proposed method is applied to data from Connecticut public school districts for the years 1980–81 through 1983–84.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1023/A:1018322023051

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