The Use of DEA As a Tool to Evaluate Public Expenditure on Education: an Analysis of the Cities of the State of Rio De Janeiro
Total Page:16
File Type:pdf, Size:1020Kb
An Acad Bras Cienc (2020) 92(2): e20190187 DOI 10.1590/0001-3765202020190187 Anais da Academia Brasileira de Ciências | Annals of the Brazilian Academy of Sciences Printed ISSN 0001-3765 I Online ISSN 1678-2690 www.scielo.br/aabc | www.fb.com/aabcjournal ENGINEERING SCIENCES The use of DEA as a tool to evaluate public Running title: DEA TO expenditure on education: an analysis of EVALUATE PUBLIC EXPENDITURE ON EDUCATION the cities of the state of Rio de Janeiro Academy Section: Engineering TULIO R.A. MOTA & LIDIA A. MEZA Sciences Abstract: The aim of this article is to evaluate the effi ciency of cities of the State of Rio de Janeiro in relation to municipal expenditures on education, as well as to identify the reasons that lead to ineffi ciency. In order to achieve the initial goal, this study uses e20190187 DEA technique. The DMUs are 69 cities of the State of Rio de Janeiro. This paper uses following variables as inputs: municipal expenditure on elementary school, number of th th 92 teachers of 9 grade of elementary school and number of students enrolled in 9 grade (2) of elementary school. The following variables are used to compose output information: 92(2) number of students who achieved advanced or profi cient level in Portuguese and number of students who achieved advanced or profi cient level in Mathematics. All data refer to the year 2013. In this study, output-oriented BCC model is used and, for its application, SIAD V3.0 software was used. GIS-DEA integration and some variables external to modelling were used to identify aspects that led to the ineffi ciency of some DMUs. This study concludes that cities that displayed a good performance are located in the least economically developed regions and that teachers’ average salary is an important motivational factor. Key words: Data Envelopment Analysis (DEA), education evaluation, efficiency, public expenditure. INTRODUCTION system. Saeb (Sistema de Avaliação da Educação Básica) indicators (BRASIL 2007b) for Portuguese According to Goldemberg (1993), there are two and Mathematics in Elementary School show main reasons why a country stimulates public worrisome indexes. Data from educational policies in order to promote quality education systems show that some inequalities concerning for all. The first one is the need to prepare different social layers still remain, which people for citizenship. The second one is jeopardizes the universalization of elementary related to the fact that the job market nowadays school (BRASIL 2006). demands more qualified professionals. Thus, Ideb (Índice de Desenvolvimento da investing in education means investing in Educação Básica) is the main tool to evaluate qualification, professional development, a basic education in Brazil. This index was created worker’s productivity and, therefore, promoting by Inep (Instituto Nacional de Estudos e the development of a country. Pesquisas Educacionais Anísio Teixeira) in 2007 Brazil presents some features that are and it stands as a pioneer initiative to bring typical of developing countries, such as the together in one indicator two equally important enormous deficiencies in the educational concepts for the quality of education: school An Acad Bras Cienc (2020) 92(2) TULIO RA MOTA & LIDIA A MEZA DEA TO EVALUATE PUBLIC EXPENDITURE ON EDUCATION flow and the averages of the performances in the most used DEA models and then shows the the assessments. This indicator does not take concepts of Inverted Frontier and Composed into account the investment of public resources Efficiency. Section 3 presents the case study that each city does in its schools as a whole; used by displaying the 3 necessary stages to therefore, Ideb does not measure the efficiency solve the problem and ultimately it presents the of public expenditure on education (BRASIL modelling that will be used. Section 4 shows the 2007a). results, as well as the analysis and discussion This article is intended to answer the of these results. Finally, Section 5 brings final following questions. Which cities of the State considerations and conclusions. of Rio de Janeiro are efficient in relation to public spending on education? Which cities are inefficient? Is there a relationship between MATERIALS AND METHODS economic development and efficiency? Is there DEA is a non-parametric method used to a relationship between geographical position measure the efficiency of the DMUs that and efficiency? Does better pay policy of the transform resources (or inputs) in products (or teachers improve performance? outputs) (Soares de Mello et al. 2005). The objective of this article is to identify DEA method considers that maximum the most and least efficient cities in the State production may be obtained by means of the of Rio de Janeiro, when it comes to municipal observation of the most productive DMUs. This public expenditure on education. Furthermore, technique classifies the DMUs in efficient and this article also attempts to identify the reasons inefficient based on the capacity to transform that conduct to inefficiency in some cities. In inputs in outputs (Charnes et al. 1978). order to help interpret the results, this study An inefficient DMU may become efficient uses variables external to modelling and the by two ways. In this article, only the two most Geographic Information Systems (GIS). common ways are presented. The first one The tool used in the current study is consists of maintaining the outputs and reducing Data Envelopment Analysis (DEA), which is a the inputs (input-oriented). The second one non-parametric method used to measure the involves maintaining the inputs and increasing efficiency of the productive units, knows as the outputs (output-oriented) (Cooper et al. DMUs (Decision Making Units), which transform 2007). resources in results. DEA technique was primarily applied to educational field, thus its use to DEA models assess education is very common. There are several DEA models that can be used, The great differential of this paper is to however, two of them are considered classic: provide a tool for public managers of the State CCR, proposed by Charnes et al. (1978), and BCC, of Rio de Janeiro to better define public policies proposed by Bunker et al. (1984). to guarantee the quality of basic education. This study also presents another differential. Unlike CCR model most studies on the subject, this paper does not According to Charnes et al. (1978), the CCR model use Ideb as a variable. works with constant returns to scale, i.e., a Apart from this introduction, this study variation in the inputs produces proportional displays 4 more sections. Section 2 presents An Acad Bras Cienc (2020) 92(2) e20190187 2 | 13 TULIO RA MOTA & LIDIA A MEZA DEA TO EVALUATE PUBLIC EXPENDITURE ON EDUCATION variation in the outputs. This model is also Output-oriented CCR model known as the CRS model (Constant Returns to Likewise, one can develop an output-oriented Scale). CCR model, as formulation (2) displays. In this This model calculates efficiency by maximizing case, a new variable is necessary ho = 1/Effo. This the division of the weighted sum of outputs new variable ho represents the number by which by the weighted sum of inputs. This model is all the outputs must be multiplied keeping all extremely benevolent because the DMUs may the inputs constant in order that the DMUo choose the weights associated to each variable reaches the efficient frontier. (Charnes et al. considering the only restriction that the chosen 1978) weights when applied to the other DMUs and to Formulation (2) shows the CCR Multiplier itself cannot be greater than 1 (Charnes et al. Model, output-oriented. (Charnes et al. 1978) 1978). r Min h = v x Input-oriented CCR model o ∑ i io i=1 Formulation (1) presents the linearized CCR Multiplier Model, input-oriented. Weights v and i subject to (2) uj are the decision variables and are also known as multipliers, which originated the name of the s = model. Model (1) has multiple optimal solutions. ∑ u j y jo 1 j=1 (Charnes et al. 1978) s r s 0 ∑ u j y jk−∑ vi xik ≤ ,∀ k Max Eff o=∑ u j y jo j=1 i=1 j=1 0 vi ,uj ≥ ,∀ i, j subject to (1) The objective function represents the r v x number by which all the outputs must be ∑ i io=1 i=1 multiplied in order to make DMUo efficient. The first restriction represents the normalization s r and the second restriction makes sure all the u y − v x ≤ 0 ,∀ k ∑ j jk ∑ i ik chosen weights applied to the other DMUs are j=1 i=1 greater than 1. 0 vi ,uj ≥ ,∀ i, j BCC model The objective function represents efficiency, According to Banker et al. (1984), the BCC model the first restriction represents normalization considers variable returns to scale, hence it is and the second restriction makes sure that the also known as VRS (Variable Returns to Scale). chosen weights applied to the other DMUs are This model replaces CCR’s proportionality with not greater than 1. convexity. This model allows the DMUs that operate with low input levels to have increasing returns to scale, while those which operate with high levels to have decreasing returns to scale. It An Acad Bras Cienc (2020) 92(2) e20190187 3 | 13 TULIO RA MOTA & LIDIA A MEZA DEA TO EVALUATE PUBLIC EXPENDITURE ON EDUCATION occurs due to convex frontier. BCC model allows s ∑uyj jo =1 the maximal productivity to vary according to j=1 the production scale. rs − + +≤ ∀ Input-oriented BCC model ∑∑vxi ik u j y jk v* 0, k ij=11= Formulation (3) presents the BCC Multiplier Model input-oriented. vuij, ≥∈0, v* R s The objective function represents efficiency, Max Effo=∑ u j y jo + u* j=1 the first restriction represents normalization and the second restriction makes sure that subject to (3) the chosen weights applied to the other r DMUs are not greater than 1.