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University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non-stochastic Methods

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Author Info

  • Melville McMillan
  • Wing Chan

Abstract

Efficiency scores are determined for Canadian universities using both data envelopment analysis and stochastic frontier methods for selected specifications. The outcomes are compared. There is considerable divergence in the efficiency scores and their rankings among methods and specifications. An analysis of rankings, however, reveals that the relative positions of individual universities across sets of several efficiency rankings (e.g., all the data envelopment analysis and stochastic frontier outcomes) demonstrate an underlying consistency. High-efficiency and low-efficiency groups are evidenced but the rank for most universities is not significantly different from that of many others. The results emphasize the need for caution when employing efficiency scores for management and policy purposes, and they recommend looking for confirmation across viable alternatives.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Education Economics.

Volume (Year): 14 (2006)
Issue (Month): 1 ()
Pages: 1-30

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Handle: RePEc:taf:edecon:v:14:y:2006:i:1:p:1-30

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Related research

Keywords: Universities; efficiency; DEA; stochastic frontier;

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Cited by:
  1. Gianni De Fraja & Paola Valbonesi, 2009. "The Design of the University System," Discussion Papers in Economics 09/19, Department of Economics, University of Leicester.
  2. BERBEGAL MIRABENT, Jasmina & SOLÉ PARELLADA, Francesc, 2012. "What Are We Measuring When Evaluating Universities’ Efficiency?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(3).
  3. Berbegal-Mirabent, Jasmina & Lafuente, Esteban & Solé, Francesc, 2013. "The pursuit of knowledge transfer activities: An efficiency analysis of Spanish universities," Journal of Business Research, Elsevier, vol. 66(10), pages 2051-2059.
  4. Lucia Buzzigoli & Antonio Giusti & Alessandro Viviani, 2010. "The Evaluation of University Departments. A Case Study for Firenze," International Advances in Economic Research, Springer, vol. 16(1), pages 24-38, February.
  5. G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 13, June.
  6. C.J. O'Donnell & S. Fallah-Fini & K, Triantis, 2011. "Comparing Firm Performance Using Transitive Productivity Index Numbers in a Meta-frontier Framework," CEPA Working Papers Series WP082011, School of Economics, University of Queensland, Australia.
  7. G. Thomas Sav, 2013. "Effects of Financial Source Dependency on Public University Operating Efficiencies: Data Envelopment Single-Stage and Tobit Two-Stage Evaluations," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 63-73, February.
  8. G. Sav, 2012. "Stochastic Cost Frontier and Inefficiency Estimates of Public and Private Universities: Does Government Matter?," International Advances in Economic Research, Springer, vol. 18(2), pages 187-198, May.

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