Data Envelopment Analysis in the Study of the Efficiency of Public Spending in Elementary Education of the Municipalities of the State of Espírito Santo.

Name: BRENO LIMA BARRETO

Publication date: 12/03/2009

Examining board:

Namesort descending Role
GUTEMBERG HESPANHA BRASIL Internal Examiner *

Summary: This research aims to evaluate the relative efficiency in municipal governments expenditures in basic education. The analysis focus is the set of 78 municipalities in the state of Espírito Santo, Brazil. All data are from the period between 2002 e 2005. For this purpose, this approach adopts the non-parametric technique of Data Envelopment Analysis (DEA). The DEA method is one of the most used to estimate the efficiency by comparing a production unit to the best performance units. Consequently, this efficiency estimation deal with education as an input-output production process. However, the research goes beyond a simple analysis of score based rankings. Different DEA models are applied to evaluate different approaches. To consider the socio-economic environmental influence in relative efficiency the variable IDH Municipal (IDHM) was included in some DEA analytical variants as exogenously fixed input. To examine the intra-school influence, the variable “teachers with higher education” was included in other models versions as “controllable input”. After that, the study also indicates “how much” and “in what areas” a relative inefficient municipality needs to improve in order to be efficient. xix A set of targets are presented to show how a municipality needs to decrease its inputs or increase its outputs in order to become relatively efficient. Finally, reinforcing the importance of the efficient use of public resources and high quality fiscal policies, we estimate the value of global misspend of municipalities public resources in that period. JEL Classification: C67, H75 Keywords: Data Envelopment Analysis, Municipalities, Efficiency measurement

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