An Estimation of the Aggregate Educational Production Function for Public Schools in Louisiana

Data at the school district level were used to estimate the relationship between basic skills test scores and various school district, family and community educational inputs. The inputs examined in the regression analysis included expenditures per student, student-teacher ratio, years of teacher's experience, along with other school-related and socioeconomic variables. Expenditures per student are significantly related to basic skills test results in a quadratic manner. Variables measuring family and community structure are shown to be significant to test performance. These results are important for policy-makers who are responsible for the allocation of funds in the education process. A greater reliance on economic incentives is suggested as an alternative to the present system.