Implications of Brazilian Institutional Guidelines on Educational Efficiency

Abstract

ABSTRACT:This paper investigates the relation between inefficiency in the Brazilian education system and municipal wealth, discussing how the current legislation possibly influences it. To that end, we apply a stochastic frontier model that accommodates covariates in the asymmetric error component to analyze the impact of per capita GDP on inefficiency. This methodology is applied to a data set on the Rio Grande do Sul municipalities for the years 2007 and 2017. The results indicate a positive effect, suggesting that richer municipalities are less efficient in allocating their resources.