Efficiency of public spending on education ans its determinants in Peru

Abstract

The research had two objectives, the first objective was to build indicators for the efficiency of expenditure and physical efficiency for the performance of the students of the second grade of primary the method of data envelopment analysis (DEA), the second objective was to find the determinants of the efficiency of education spending. First, the results show that the most efficient departments in education spending in the 2009-2016 period, under the DEA approach with constant returns to scale both under the input orientation approach and under the product orientation, were Ica and Piura; while with variable returns to scale were Ica, Piura, Arequipa and Tacna. Secondly, regarding physical efficiency, the most efficient departments under the DEA analysis with constant returns to scale, both product-oriented and input-oriented, were Moquegua, Tacna, Madre de Dios, Ucayali and Puno; while low variable returns to scale were Moquegua, Tacna, Madre de Dios, Ucayali, Puno, Apurímac and Loreto. Third, the results suggest that the efficiency of public spending on education is positively related to the years of education of the population over 15 years of age, the quality status of the school premises, and the mining canon, with the mining canon being the that has greater predictive power.