Economics Research Institute Study Paper
Utah State University Department of Economics
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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.
Chakraborty, Kalyan; Biswas, Basudeb; and Lewis, W. Cris, "Economies of Scale in Public Education: An Econometric Analysis" (1996). Economic Research Institute Study Papers. Paper 110.