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This paper aims to identify the main factors affecting the number of local education government employees and also to develop calculation formula by which the optimal number of each local education government employees can be produced according to the change of demand-side variables. For this purpose, it employs dynamic optimization simulation method and contrasts its simulation results with what the other methods may produce. The primary thrust of our findings is that the determinants of local education government size are number of students and number of classes, and their empirical estimates are basically in conformity with a managerialist interpretation of local education government size. It is found that the newly-developed calculation formula can be more robust and more reliable in predicting the future optimal personnel size of each local education government than that produced by regression analysis.