Abstract

This paper assesses the technical efficiency of schools in Chile, which is defined as the capacity of schools to generate the maximum output (academic achievement) given the quantity of inputs they use. Two alternative methodological approaches for measuring efficiency are used: (i) estimation of a stochastic production frontier, and (ii) data envelopment analysis (DEA), which allows identification of the efficient production frontier of the schools analysed nonparametrically. Each of these techniques has advantages and limitations, which are discussed in the paper; they lead, however, to the same conclusions when a sample of 2000 schools is analysed. The results obtained provide interesting points for educational policy discussion in Chile.