How students' exogenous characteristics affect faculties’ inefficiency. A heteroscedastic stochastic frontier approach
AbstractBy using a heteroscedastic stochastic frontier model, this paper focuses on how students' exogenous characteristics (such as personal demographic information, pre-enrollment educational background and household economic status) affect faculties’ inefficiency. Using individual data on freshmen enrolled at a public owned university in Italy over the 2002-2008 period, we focus both on the direction of this influence on technical inefficiency and on the magnitude of the related partial effects. A measure of R2 has also been calculated in order to evaluate the overall explanatory power of the exogenous variables used. The empirical evidence reveals the validity of the heteroscedastic assumption, giving credit to the use of some students’ individual characteristics according to which the inefficiency is allowed to change. Moreover, the estimates suggest that the university could improve the students’ performances by investing in labour inputs.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 54011.
Date of creation: Feb 2014
Date of revision:
Stochastic frontier analysis; Technical inefficiency estimates; Heteroscedasticity; Higher education.;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-15 (All new papers)
- NEP-EDU-2014-03-15 (Education)
- NEP-EFF-2014-03-15 (Efficiency & Productivity)
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