Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

11

Publisher

Utah State University Department of Economics

Publication Date

1999

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

This paper investigates the sources of scale economies in the production of public education. The relationship between the average cost of producing educational output and other school characteristics, including 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 significant scale economies associated with both school and district sizes.

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