Much of the economic analysis of local governments assumes that local policymakers operate in a competitive environment where cities produce a level of local public sector output that can be considered "efficient". Efficiency can be quantifies as the highest value of local property tax base...

We examine the cost structure of public schools in this paper, using frontier cost models that enable us to estimate sources of inefficiency. A two equation stochastic frontier model is presented that can be used to explain both cost and the sources of inefficiency. Using that model and data for...