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This paper analyses region-level technical efficiency in nine European countries over the 1995-2007 period. We propose the application of a nonparametric conditional frontier approach to account for the presence of heterogeneous conditions in the form of geographical externalities. Such environmental factors are beyond the control of regional authorities, but may affect the production function. Therefore, they need to be considered in the frontier estimation. Specifically, a spatial autoregressive term is included as an external conditioning factor in a robust order- m model. Thus we can test the hypothesis of non-separability (the external factor impacts both the input-output space and the distribution of efficiencies), demonstrating the existence of significant global interregional spillovers into the production process. Our findings show that geographical externalities affect both the frontier level and the probability of being more or less efficient. Specifically, the results support the fact that the spatial lag variable has an inverted U-shaped non-linear impact on the performance of regions. This finding can be interpreted as a differential effect of interregional spillovers depending on the size of the neighboring economies: positive externalities for small values, possibly related to agglomeration economies, and negative externalities for high values, indicating the possibility of production congestion. Additionally, evidence of the existence of a strong geographic pattern of European regional efficiency is reported and the levels of technical efficiency are acknowledged to have converged during the period under analysis. [ABSTRACT FROM AUTHOR]

This paper uses a fully nonparametric framework to assess the efficiency of primary schools using data about schools in 16 European countries participating in PIRLS 2011. This study represents an original enterprise since most of the empirical research in the field is restricted to evaluations at regional or national level and focused on secondary education. For our purpose, we adapt the metafrontier framework to compare and decompose the technical efficiency of primary schools operating in heterogeneous contexts, which in our case is represented by different educational systems or countries. Similarly, we use an extension of the conditional nonparametric robust approach to test the potential influence of a mixed set of environmental school factors and variables representing cultural values of each country. Our results indicate that the intergenerational transmission of non-cognitive skills such as responsibility or perseverance are significantly related to school efficiency, whereas most school factors do not seem to have a significant influence on school performance. [ABSTRACT FROM AUTHOR]