EFFICIENCY, PRODUCTIVITY AND DETERMINANTS OF INEFFICIENCY AT PUBLIC DAY-CARE-CENTERS IN SWEDEN

Efficiency differences among day care centers and productivity change over time are examined on the basis of nonparametric frontiers calculated using the DEA methodology. The data consist of approximately 200 public day care centers in Gothenburg, Sweden, for the years 1988 and 1 989. The findings indicate a potential output increase of about 10 to 1 5 per cent each year, and a productivity decrease of 3 per cent between the years. An attempt is also made to explain the differences in inefficiency by applying a Tobit model.