Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

96

Issue

45

Publisher

Utah State University Department of Economics

Publication Date

1996

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

23

Abstract

The purpose of this paper is to investigate the sources of economies of scale in the production of public education. The relationship between the average cost ofproducing educational output and other school characteristics including the school and district size is estimated using a neoclassical cost function. The empirical analysis uses panel data from Utah school districts and estimates the function using the covariance and error component models after making necessary corrections for heteroscedasticity and autocorrelation. The evidence indicates that there are scale economies associated with school size but not district size.

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