Implications of Brazilian institutional guidelines on educational efficiency

This paper investigates the relation between inefficiency in the Brazilian education system and municipal wealth, discussing how the current legislation possibly influences it. To that end, we apply a stochastic frontier model that accommodates covariates in the asymmetric error component to analyze the impact of per capita GDP on inefficiency. This methodology is applied to a data set on the Rio Grande do Sul municipalities for the years 2007 and 2017. The results indicate a positive effect, suggesting that richer municipalities are less efficient in allocating their resources.