economics of education lecture 1 Flashcards
what is technical efficiency?
maximum output for given levels of input
what is allocative efficient?
correct output mix
what are the quantitative approaches for the empirical analysis of cost and production functions?
regressions analysis and data envelopment analysis
what are the main issues in public sector performance?
enviroment, non marketed output, political dimension, alternative methods of measuring performance, emphasis on value for money
what is the issue of public sector performance that is related to the enviroment
non competitive with near monopoluy suppliers
what is the issue of public sector performances that is related to non marketed output?
absence of prices and the “bottom line” of profit as a measure of performance
what is the issue of public sector performances that is related to political dimensions?
what is the issue of public sector performances that is related to alternative methods of measuring permance?
approaches to alternative methods of measuring perfomance and increasing efficiency
What were the three key questions jackson (1993) raised with regard to performance measurement
What are the origins of the criteria used to evaluate public services?
Who sets the criteria?
Whose interests are being served by the evalution?
who shoulf pays for the education?
Depends on the extent of the externalities( there may be different payers at different levels of education
Remember to consider the type of market
what is the effect of general education>
General – enhances the productivity regardless of where employed (individuals tend to pay beyond minimum “agreed level”
what is the effect of specific education?
Specific – to the firm alone (the firms may exploit this but will finance it)
what is the relationship of signalling and screening in relation to earnings?
Evidence suggest that signalling and screening only account for a small part of the differential in earnings ( but note the use of the a factor in rates of return)
