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Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity

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  • Agasisti, Tommaso
  • Barra, Cristian
  • Zotti, Roberto

Abstract

In assessing the performance of universities, the most recent literature underlined that the efficiency scores may suffer from the presence of incidental parameters or time-invariant, often unobservable, effects that lead to biased efficiency estimates. To deal with this problem, we apply a procedure developed by [67]; for estimating the efficiency in Italian higher education through a multi-output parametric distance function. We show that models which do not consider unobservable heterogeneity tend to estimate divergent efficiency scores. We also study the determinants of efficiency; the findings provide a clue towards the expansion of pro-competitive policies in the Italian higher education sector, consistently with the interpretation that when market forces operate, there are benefits for university efficiency. When exploring differences in the performance of universities, by geographical areas, we claim that maintaining State-level policies can be detrimental for overall efficiency, and instead special interventions for universities in the South should be designed.

Suggested Citation

  • Agasisti, Tommaso & Barra, Cristian & Zotti, Roberto, 2016. "Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity," Socio-Economic Planning Sciences, Elsevier, vol. 55(C), pages 47-58.
    • Handle: RePEc:eee:soceps:v:55:y:2016:i:c:p:47-58
    DOI: 10.1016/j.seps.2016.06.002
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    10. Luigi Aldieri & Cristian Barra & Concetto Paolo Vinci, 2019. "The role of human capital in identifying the drivers of product and process innovation: empirical investigation from Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1209-1238, May.
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    13. Facundo Quiroga-Martínez & Esteban Fernández-Vázquez & Catalina Lucía Alberto, 2018. "Efficiency in public higher education on Argentina 2004–2013: institutional decisions and university-specific effects," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-18, December.
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    16. Ariel Gustavo Letti & Mauricio Vaz Lobo Bittencourt & Luis E. Vila, 2022. "Stochastic vs. deterministic frontier distance output function: Evidence from Brazilian higher education institutions," Journal of Productivity Analysis, Springer, vol. 58(1), pages 55-74, August.
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    More about this item

    Keywords

    Efficiency; Unobserved heterogeneity; Higher education;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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