# Worksheet1

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PART I: ESTIMATING UNIT COSTS AND ANALYZING THEIR COMPONENTS

Problem 1

Table 1:    Selected data on enrollments and aggregrate public spending on education
in a hypothetical country

Number of students ('000)                     3,206.0    299.0          205.0         -             3,710.0
Recurrent public spending: (million US\$)
Personnel remuneration                       6,227.2     1,853.9        917.4              680.2    9,678.7
Goods and non-staff services                   185.0        40.0        130.0              225.7      580.7
Welfare/Transfer payments                       40.0        44.0        600.0                -        684.0

TOTAL                                         6,452.2     1,937.9      1,647.4              905.9   10,943.4

(1)     UC= B = (P + G + W + A)
N            N

Table 2:   Unit cost estimates by component and level of education

Primary     Secondary          Higher
Staff component (US\$)
Goods and non-staff services component (US\$)
Welfare/Transfer payments component (US\$)
Overall unit costs (US\$)

As a multiple of unit cost of primary education
As a percentage of per capita income
Relative cost index

Note: The per capita income of the hypothetical country in this example is assumed to
be US\$8,900.

Worksheet1                                             Page 1
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Problem 2

Table 3: Number of students and teachers in basic education in a hypothetical
country

Cycle 1         Cycle 2     Both cycles
Number of pupils                     2,400,000         806,000      3,206,000
Number of teachers                      89,000          50,400        139,400

Table 4: Teacher salaries and distribution of teachers by qualification in a
hypothetical country

Annual Salary          Percentage distribution of teachers
Qualification         (\$)           Cycle 1          Cycle 2        Both cycles
A              40,000            23.0             60.0            36.4
B             35,000            45.0             30.0            39.6
C             25,200            32.0             10.0            24.0
All groups            -             100.0            100.0           100.0

(a) Aggregate cost of personnel = \$ 3,435.4 million
(b) Transfer payments average \$300 a year per pupil, and 3,200 beneficiaries
(c) Per pupil spending on goods and non-staff services are half as high as that in cycle 2

Table 5: Estimates of aggregate and unit costs in cycles 1 and 2 of Basic education in a hypothetical country

Aggregate costs                              Unit costs
Total for                            Average for
Input                               Cycle 1         Cycle 2        both cycles    Cycle 1     Cycle 2    both cycles
Teachers
Non-teachers
Goods & non-staff services
Welfare/Transfer payments
All inputs

Worksheet2                                                 Page 2
UNITCST1.XLS

Problem 3

This problem requires you to apply the formulas discussed in Paragraphs 7-
13 of the case study write-up. Use the space here as a scratch pad to make

% of teachers on active teaching duty: _______

Actual as % of official workload = _______

Worksheet3                  Page 3
454aee92-6cbd-4a37-b2b3-60e35d2f60f9.xls

Problem 4

For convenience, your results from Table 5 are repeated below.
Refer to the equations in Paragraphs 7-13 of the case study to make your calculations using this
worksheet as a scratch pad. You may enter your results in the spaces below or in the case study
write-up.

Table 5: Estimates of aggregate and unit costs in cycles 1 and 2 of Basic education in a hypothetical country

Aggregate costs                       Unit costs
Total for                           Average for
Input                            Cycle 1      Cycle 2    both cycles   Cycle 1     Cycle 2    both cycles
Teachers
Non-teachers
Goods & non-staff services
Welfare/Transfer payments
All inputs

(a)     UCt2 = ________ x UCt1

(b)     UCt2 = ________ x ________ x UCt1

(c)     UCt2 = ________ x ________ x ________ x ________ x UC t1

(d)     UCt2 = ________ x ________ x ________ x ________ x ________ x ________ x UC t1

Worksheet4                                              Page 4
UNITCST1.XLS

Problem 5

You might find it just as easy to perform the calculations here with paper and pencil.
But if you wish, you may use the space here as a scratch pad. Enter your results
here or on the case study write-up itself.

(a)     Current unit cost = ________

New unit cost = ________

% change in unit cost = ________

(b)      Current pupil-teacher ratio = ________

New pupil-teacher ratio = ________

(c)      Urban unit cost = ________

Rural unit cost = ________

(d)       Implicit cost of decline in pupil-teacher ratio: \$         million

(e)      Simulated enrollment ratio:           %
Assume the current enrollment ratio = 42 percent.
Also assume the PTR has been maintained at 37 instead of allowing it to decline to 26.97.

Worksheet5                                          Page 5

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