PODINOVSKI, V. ... et al, 2014. Combining the assumptions of variable and constant returns to scale in the efficiency evaluation of secondary schools. European Journal of Operational Research, 239 (2), pp.504-513
Our paper reports on the use of data envelopment analysis (DEA) for the assessment of
performance of secondary schools in Malaysia during the implementation of the policy of
teaching and learning mathematics and science subjects in the English language (PPSMI).
The novelty of our application is that it makes use of the hybrid returns-to-scale (HRS) DEA
model. This combines the assumption of constant returns to scale with respect to quantity
inputs and outputs (teaching provision and students) and variable returns to scale (VRS) with
respect to quality factors (attainment levels on entry and exit) and socio-economic status of
student families. We argue that the HRS model is a better-informed model than the
conventional VRS model in the described application. Because the HRS technology is larger
than the VRS technology, the new model provides a tangibly better discrimination on
efficiency than could be obtained by the VRS model. To assess the productivity change of
secondary schools over the years surrounding the introduction of the PPSMI policy, we adapt
the Malmquist productivity index and its decomposition to the case of HRS model.