A cost efficiency analysis of school districts: is larger more efficient?

Abstract

Can school districts become too large whereby their size exceeds their point of efficiency? To investigate this question, all K-12 school districts in New Jersey were divided into three groups based on student body size. In a comparison of six average cost measures, larger districts were found to be more efficient on only one of the six measures. A more optimum size for school districts appeared to be in moderate sized districts. The theoretical grounds for this investigation regarded the suggested effects of vertical and horizontal decentralization.

Citation

Garner, C.W. (1998), "A cost efficiency analysis of school districts: is larger more efficient?", Journal of Public Budgeting, Accounting & Financial Management, Vol. 10 No. 4, pp. 513-526. https://doi.org/10.1108/JPBAFM-10-04-1998-B003