Analysis of The Efficiency of Public Expenditure on Education in Elementary Education in The State of Alagoas

Abstract

Objective: This article analyzes the efficiency of public spending on education in the municipal public network in elementary education, in all cities in Alagoas, using the data envelopment analysis method, DEA.   Theoretical Framework: The present work used the variable return to scale (BCC) model, since we would be dealing with municipalities with varied realities. There are two basic ways for a unit that is inefficient to become efficient. The first would be to reduce resources (inputs) and keep products constant, which would be an input-oriented orientation; the second would be doing the opposite, increasing the result (products) from the same amount of inputs, an orientation focused on outputs.   Method: The data envelopment analysis method - DEA is used to estimate efficiency with traditional inputs such as school infrastructure, capital, labor and municipal wealth. As output, the Portuguese and mathematics grades in the 9th grade, in the Saeb 2019 test, are considered, multiplied by the students enrolled in this year of education; as well as the inverse of per capita expenditure on elementary education.   Results and Discussion: It was concluded that most of the benchmarkings are represented by municipalities with smaller inhabitants, indicating that the population increase in municipalities increases the demand for education. Research Implications: Thus, based on technical efficiency analyses, public policies can be proposed that mitigate the deficiencies presented in elementary education.   Originality/Value: This study contributes to the literature by estimating the efficiency of municipalities in terms of public spending on education and the efficiency results are the grades of public school students. The research introduces a new output to measure efficiency, and points to new evidence for public educational policies.