This report analyzes the results of research into the relationships between such inputs as expenditure per pupil and school district size and the average achievement of pupils in basic subjects. The analysis focuses on production function relationships of education. The results of the analysis illustrate the problems involved in constructing meaningful production functions from data that are essentially cross-sectional. The data are discussed, a model of the educational process is proposed, and the problems concerning its implementation with available data are explored. Empirical findings relate the most important inputs to the average achievement level of 6th grade pupils who were present in the 4th grade, as well as to the average performance gain over the 2-year period. (Author/JF)