The efficiency of public education is examined using a cost indirect output distance function. Efficiency estimates are obtained using data envelopment analysis applied to data from Georgia public schools. Georgia school districts utilize educational budgets with reasonable efficiency, achieving an overall efficiency of 98% with a range of 93%-100%. If all school districts were 100% efficient, outputs could be expanded 2%. This could be achieved by increasing funding $75.46 million state-wide in total for each of the 3 years. From the consumers’ (voters) point of view, this result suggests that inefficiency costs Georgia, on average, a total of $226.38 million from 1994 to 1996.


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