Abstract:
This paper aims to investigate the relation between inefficiency in the Brazilian education system and municipal wealth, discussing how the actual legislation possibly influences it. To that end, we apply a stochastic frontier model which accommodates covariates in the asymmetric error component to analyze the impact of the GDP per capita on the inefficiencies. This methodology is applied to a panel dataset from the Metropolitan area of Porto Alegre municipalities over the period 2007-2017. The results indicate a positive effect, suggesting that richer municipalities are less efficient in allocating their resources.