The aim of this paper is to measure educational efficiency in Spanish regions using data at student level from PISA 2006. For this purpose, we use a parametric output distance function to implement the methodology developed by Battese and Coelli (1995). The use of this framework allows us to obtain significant conclusions. Thus, in Spain regional educational policies seems to matter since Andalusia, Catalonia and the regions that do not participate in PISA 2006 with an extended sample are the most inefficient regions. We also conclude that the peer group effect is a crucial variable to increase students’ test scores. However class size or school ownership has no effect on efficiency results.
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