Definition of The Education Production Function:
The education production function is usually a function mapping quantities of measured inputs to a school and
student characteristics to some measure of school output, like the test scores
of students from the school.
For empirical purposes one might assume this function is linear and generate
the linear regression:
Y = X'b + S'c + e
where Y is a measure of school outputs like a vector of student test scores, X
is a set of measures of student attributes (collectively or individually), S
is vector of measures of schools those students attend, b and c are
coefficients, and e is a disturbance term.
(Econterms)
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