Performance Measurement in Not-for-Profit Governance: An Empirical Study of the Minnesota Independent School Districts
25 Pages Posted: 15 Oct 2008 Last revised: 8 Jan 2019
Date Written: June 1, 2008
Linearity and separability assumptions are pervasive in most not-for-profit governance and performance measurement systems. In this paper, we employ both parametric and nonparametric econometric methodologies to test the linearity and separability assumptions using data collected from the Minnesota Independent School Districts. Our test results reject both the assumptions for the Minnesota independent school districts. These findings suggest a need to develop alternative procedures that do not rely on these two pervasive assumptions if the information provided by not-for-profit performance measurement systems is to be relevant for governance decision making and performance evaluation.
Keywords: Performance Measurement, Not- for-Profit Governance, Linearity, Input Separability, School District Financing, Political Economy
JEL Classification: C44, C61, C67, D61, G18, G30, H10, I22, L30, L31, L51,M40, M41, M49, P16
Suggested Citation: Suggested Citation