TY - JOUR
T1 - Estimation of benchmark performance standards
T2 - An application to public school expenditures
AU - Dopuch, Nicholas
AU - Gupta, Mahendra
PY - 1997/7
Y1 - 1997/7
N2 - The accounting and management literature reflects an increasing interest in relative performance evaluation (RPE) measures, often called 'benchmarking'. In this paper we illustrate how stochastic frontier estimation (SFE) can be used to estimate benchmark performance standards which control for differences in the environments of the benchmarked operating units. Our application of SFE uses cross-sectional data reported by school districts in the state of Missouri for the year 1990-91. The results suggest that the districts may have had as much as $394 million of excess expenditures in their operations.
AB - The accounting and management literature reflects an increasing interest in relative performance evaluation (RPE) measures, often called 'benchmarking'. In this paper we illustrate how stochastic frontier estimation (SFE) can be used to estimate benchmark performance standards which control for differences in the environments of the benchmarked operating units. Our application of SFE uses cross-sectional data reported by school districts in the state of Missouri for the year 1990-91. The results suggest that the districts may have had as much as $394 million of excess expenditures in their operations.
KW - Benchmarking
KW - Cost control
KW - Education expenditures
KW - Relative performance evaluation
UR - http://www.scopus.com/inward/record.url?scp=0031190784&partnerID=8YFLogxK
U2 - 10.1016/S0165-4101(97)00003-7
DO - 10.1016/S0165-4101(97)00003-7
M3 - Article
AN - SCOPUS:0031190784
SN - 0165-4101
VL - 23
SP - 141
EP - 161
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
IS - 2
ER -