QUANTITY, QUALITY, AND EFFICIENCY FOR A PARTIALLY SUPER-ADDITIVE COSTFUNCTION - CONNECTICUT PUBLIC-SCHOOLS REVISITED

The dual cost function is partially super-additive when an output quan tity bundle of a given quality can be produced at a lower cost by brea king up the output into a number of smaller bundles of the same qualit y to be produced by several firms instead of the entire bundle being p roduced by a single firm. In this paper, we build on Maindiratta's con cept of size efficiency and propose a nonparametric method using mixed integer programming to measure cost efficiency allowing for partial s uper-additivity of the cost function. The proposed method is applied t o data from Connecticut public school districts for the years 1980-81 through 1983-84.