Productivity in Australian Education between 1986/87 and 1993/94

This paper attempts to estimate the change in total factor productivity (TFP) in total education services provided in Australia, between 1986/87 and 1993/94. A simple model is developed and calibrated using Australian data. TFP is estimated to have fallen by between 16 and 26 per cent depending on what is assumed about the behaviour of average quality over this period.