Estimation of Cost Efficiency of Australian Universities
AbstractThe purpose of this paper is to quantify the efficiency with which Australian universities utilise their teaching resources. The study estimates the cost efficiency of 36 universities over the period 1995-2002 using stochastic frontier analysis. The present study differs from previous cost and efficiency studies of Australian universities in two respects. First, it employs stochastic frontier analysis for the specification of a cost function for Australian universities which allows for the estimation of cost efficiency for each university under study. Second, a panel data set is utilised in the estimation of the cost function which enables not only comparisons of cost efficiency between universities but also an econometric testing of the assumption of an identical cost function for every university. The main finding is that universities are not operating efficiently as measured by cost efficiency and in relative terms. An efficiency ranking is derived and policy inferences are discussed.
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Bibliographic InfoPaper provided by Macquarie University, Department of Economics in its series Research Papers with number 0502.
Length: 21 pages.
Date of creation: Mar 2005
Date of revision:
Cost efficiency; stochastic frontier analysis; higher education;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- I20 - Health, Education, and Welfare - - Education - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-05 (All new papers)
- NEP-EDU-2006-03-05 (Education)
- NEP-EFF-2006-03-05 (Efficiency & Productivity)
- NEP-SOG-2006-03-05 (Sociology of Economics)
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- Angel García Correas & Manuel Larran Jorge, 2010. "Análisis de diferentes medidas de la eficiencia investigadora y factores explicativos en las universidades públicas españolas," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Greg (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 36, pages 703-732 Asociación de Economía de la Educación.
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