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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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File URL: http://www.tandfonline.com/10.1080/09645290500481857
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Bibliographic Info

Article provided by Taylor and 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. 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.
  2. De Fraja, Gianni & Valbonesi, Paola, 2012. "The design of the university system," Journal of Public Economics, Elsevier, vol. 96(3), pages 317-330.
  3. 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.

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