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Technical Efficiency

Technical efficiency is a useful tool for benchmarking school performance. Schools are technically efficient when their resources—including personnel, supplies, and computers—result in best practice educational outcomes, such as improvement in standardized test scores and graduation rates of their students. Alternatively, they are identified as technically efficient when their observed educational outcomes are achieved with best practice use of their resources. A practical advantage of technical efficiency as a benchmarking tool is that it does not require information on prices and can use observed data to identify best practice. Technical efficiency describes the relationship between the physical inputs, such as personnel, required to produce quantitative outputs, such as graduation rates, passing rates on standardized tests, absenteeism rates, and improvements in test scores, while accounting for ...

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