Efficiency differences of Finnish senior secondary schools: An application of DEA and Tobit analysis

We studied efficiency differences among Finnish senior secondary schools by Data Envelopment Analysis (DEA). Four model variants were used. Average efficiencies in the most extensive models were 82-84 per cent. When parents' educational level was treated as an additional input, average efficiency increased to 91 per cent. The efficiency rankings of schools changed to some extent when simplest quantitative inputs and outputs were augmented by measures of teacher quality and national matriculation examination results. As a second stage after DEA analysis, we explained the degree of inefficiency (100-efficiency score) by a statistical Tobit model. Schools with small classes and heterogenous student bodies were inefficient whereas school size did not affect efficiency. Surprisingly, private schools were inefficient relative to public schools. When parents' educational level was only included in the Tobit model, it affected efficiency positively. (C) 1998 Elsevier Science Ltd. All rights reserved.