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Education, Primary--Economic aspects; School enrollment


Because of declining demands for a number of urban public services, public officials have had to make difficult adjustments towards more efficient levels of these services. One such adjustment of very great concern has been the modification of education services in response to declining enrollments. This study investigates the impacts of changing enrollments, enrollment scale, capacity utilization, and age of schools on per student instructional costs and per student cost of land and buildings. The resulting model has been estimated for Duluth, Minnesota primary schools and these regression estimates provide a good explanation for per student instructional costs. The residuals for the per student instructional costs are also examined. These residuals provide an important source of information for making managerial decisions regarding service levels since they indicate which schools are performing above or below cost norms.

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Economics Commons



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