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Planning Educational Services*

Published online by Cambridge University Press:  28 April 2015

Fred White
Affiliation:
University of Georgia
Luther Tweeten
Affiliation:
Oklahoma State University
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Extract

A school system can be visualized as a firm utilizing capital and labor to produce its output. It must compete with other firms in purchasing its inputs. It is broadly concerned with efficient use of resources to produce its product. However, there is no well-defined product nor a price that can be attached to its product, and most of its product is not directly sold. Users (students) exert little pressure to increase efficiency, not only because they lack mature judgment and are unaware of input-output relationships (often inputs as well as outputs are ill-defined and uncertain), but also because efficiency gains are not passed to users. Furthermore, factors outside the school system influence output throughout the long production process. Even if the price mechanism does not work, economic principles can still be used in education to improve decision making.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 1972

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Footnotes

*

Oklahoma State Agr. Exp. Sta. Journal Article No. P-18

References

[1]Viner, Jacob. “Cost Curves and Supply Curves.” Readings in Price Theory. Ed. Stigler, George J. and Boulding, Kenneth E., American Economics Association. Homewood, Illinois: Richard D. Irwin, Inc., 1952, pp. 201213.Google Scholar
[2]White, Fred C.A Quantitative Analysis of Factors Affecting Elementary and Secondary Schooling Quality in Oklahoma, With Economic Application for Rural Areas.” Unpub. PhD Dissertation, Oklahoma State University, 1972.Google Scholar