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Competition and Efficiency: Overseas students and technical efficiency in Australian and New Zealand Universities

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Abstract

Economic theory suggests that competitive pressures will impact on organisational efficiency. In recent years, universities in Australia and New Zealand have faced increased competition for students. The aim of this paper is to explore the efficiency of Australian and New Zealand public universities and to investigate the impact of competition for students from overseas on efficiency. Output distance functions are estimated using panel data for the period 1995-2002 for Australia and 1997-2003 for New Zealand. The results show that competition for overseas students has led to increased efficiency in Australian universities. However, competition for overseas students appears to have had no effect on efficiency in New Zealand.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2007_09eco.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2007_09.

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Length: 36 pages
Date of creation: 19 Oct 2007
Date of revision:
Handle: RePEc:dkn:econwp:eco_2007_09

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  1. Roger Carrington & Tim Coelli & D. S. Prasada Rao, 2005. "The Performance Of Australian Universities: Conceptual Issues And Preliminary Results," Economic Papers, The Economic Society of Australia, vol. 24(2), pages 145-163, 06.
  2. Mita Bhattacharya & Russell Smyth, 2003. "The Life Cycle Research Output Of Professors In Australian Economics Departments: An Empirical Analysis Based On Survey Questionnaires," Economic Papers, The Economic Society of Australia, vol. 22(2), pages 30-46, 06.
  3. Hay, Donald A & Liu, Guy S, 1997. "The Efficiency of Firms: What Difference Does Competition Make?," Economic Journal, Royal Economic Society, vol. 107(442), pages 597-617, May.
  4. Malcolm Abbott & Hristos Doucouliagos, 2004. "Research output of Australian universities," Education Economics, Taylor & Francis Journals, vol. 12(3), pages 251-265.
  5. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
  6. Tim J. Coelli & Chris O'Donnell, 2003. "A Bayesian Approach To Imposing Curvature On Distance Functions," CEPA Working Papers Series WP032003, School of Economics, University of Queensland, Australia.
  7. Abbott, M. & Doucouliagos, C., 2003. "The efficiency of Australian universities: a data envelopment analysis," Economics of Education Review, Elsevier, vol. 22(1), pages 89-97, February.
  8. Rafael Cuesta & José Zofío, 2005. "Hyperbolic Efficiency and Parametric Distance Functions: With Application to Spanish Savings Banks," Journal of Productivity Analysis, Springer, vol. 24(1), pages 31-48, 09.
  9. Egon P. Franck & Bruno Schönfelder, 2000. "On The Role Of Competition In Higher Education – Uses And Abuses Of The Economic Metaphor," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 52(3), pages 214-237, July.
  10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  11. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
  12. Richard Pomfret & Liang Choon Wang, 2003. "Evaluating The Research Output Of Australian Universities' Economics Departments," Australian Economic Papers, Wiley Blackwell, vol. 42(4), pages 418-441, December.
  13. Andrew Worthington, 2001. "An Empirical Survey of Frontier Efficiency Measurement Techniques in Education," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 245-268.
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Cited by:
  1. 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.
  2. Haelermans, Carla & De Witte, Kristof & Blank, Jos L.T., 2012. "On the allocation of resources for secondary schools," Economics of Education Review, Elsevier, vol. 31(5), pages 575-586.
  3. 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.
  4. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
  5. G. Thomas SAV, 2012. "Is The Production of Religious Knowledge Efficient? Managing Faith Related Postsecondary Institutions," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 12, February.
  6. Tudor EDU & Iliuta Costel NEGRICEA, 2012. "Brand Positioning - A Marketing Resource and an Effective Tool for Small and Medium Enterprises," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 11, February.

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