Evaluating the Technical Efficiency of Elementary Education in India : An Application of DEA

This paper assesses the technical efficiency and efficiency differences in elementary education system across Indian states by using Data Envelopment Analysis (DEA) and regression model. It considers different educational outcome variables such as enrollment rate in primary schools and upper primary schools, and completion rate in primary schools and upper primary schools for the period 2007-08. The model also includes several inputs hypothesized to impact the output, such as percentage of habitants with access to primary school within 1 km distance and upper primary school within 3-5 km, and percentage of full-time teachers in primary and upper primary schools. Using DEA, the paper is able to separate states that might qualify as performing well from those where some improvement might be possible in terms of efficiency. This could imply a better allocation by the states with usually scarce resources available for elementary education in India. Results show that Delhi, Kerala, Tamil Nadu and Nagaland with relatively high achievement values in education sector are also operating at the efficient frontier. On the other hand, Bihar, Madhya Pradesh, Odisha and Uttar Pradesh have low outcomes, but the problem with these states is that given their current input levels, there is limited scope for improving their outcomes and catching up with the better-off states. It is argued here that adequate inputs need to be made available for such states either by generating and investing more in education sector by the states or by better usage of the existing centrally-sponsored schemes. The study also makes an attempt to identify the determinants of efficiency by using simple regression model