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Modelling Exogenous Variables in Human Capital Formation through a Heteroscedastic Stochastic Frontier

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  • Tiziana Laureti

Abstract

The objective of this paper is to suggest the use of a stochastic frontier model in which the inefficiency component is heteroscedastic in the measurement of technical efficiency in Human Capital Formation in the Italian University System. The heteroscedastic frontier model enables one to consider the effect of students’ individual characteristics and the influences of the resources and organization of the specific faculty on efficiency. The suggested model is applied to the case of Florence University graduates. The results show that the model specification is strongly supported by the data. Moreover, the suggested specification explains variation in technical efficiency in terms of graduate-specific factors. The technical efficiency scores obtained are comparable across faculties. Copyright International Atlantic Economic Society 2008

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  • Tiziana Laureti, 2008. "Modelling Exogenous Variables in Human Capital Formation through a Heteroscedastic Stochastic Frontier," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(1), pages 76-89, February.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:1:p:76-89:10.1007/s11294-007-9132-9
    DOI: 10.1007/s11294-007-9132-9
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    Cited by:

    1. Barra, Cristian & Lagravinese, Raffaele & Zotti, Roberto, 2015. "Explaining (in)efficiency in higher education: a comparison of parametric and non-parametric analyses to rank universities," MPRA Paper 67119, University Library of Munich, Germany.
    2. Zoghbi, Ana Carolina & Rocha, Fabiana & Mattos, Enlinson, 2013. "Education production efficiency: Evidence from Brazilian universities," Economic Modelling, Elsevier, vol. 31(C), pages 94-103.
    3. 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.
    4. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    5. Fabio Pieri & Enrico Zaninotto, 2010. "The Impact of Vertical Integration and Outsourcing on Firm Efficiency: Evidence from the Italian Machine Tool Industry," DISA Working Papers 1001, Department of Computer and Management Sciences, University of Trento, Italy, revised 11 Mar 2010.
    6. Laureti, Tiziana & Benedetti, Ilaria & Branca, Giacomo, 2021. "Water use efficiency and public goods conservation: A spatial stochastic frontier model applied to irrigation in Southern Italy," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    7. Cristian Barra & Roberto Zotti, 2017. "Investigating the Human Capital Development–growth Nexus," International Regional Science Review, , vol. 40(6), pages 638-678, November.
    8. Cristian Barra & Roberto Zotti, 2016. "Measuring Efficiency in Higher Education: An Empirical Study Using a Bootstrapped Data Envelopment Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(1), pages 11-33, February.
    9. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.
    10. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2020. "Socio-institutional determinants of educational resource efficiency according to the capability approach: An endogenous stochastic frontier analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    11. Barra, Cristian & Lagravinese, Raffaele & Zotti, Roberto, 2018. "Does econometric methodology matter to rank universities? An analysis of Italian higher education system," Socio-Economic Planning Sciences, Elsevier, vol. 62(C), pages 104-120.
    12. Zotti, Roberto & Barra, Cristian, 2014. "How students' exogenous characteristics affect faculties’ inefficiency. A heteroscedastic stochastic frontier approach," MPRA Paper 54011, University Library of Munich, Germany.

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    More about this item

    Keywords

    Heteroscedasticity; Stochastic frontier production model; Technical efficiency estimates; Human capital formation; C20; D20; I21;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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