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Efficiency, technology and productivity change in Australian universities, 1998-2003

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  • Andrew Worthington
  • Boon L. Lee

    (School of Economics and Finance, Queensland University of Technology)

Abstract

In this study, productivity growth in thirty-five Australian universities is investigated using nonparametric frontier techniques over the period 1998 to 2003. The inputs included in the analysis are full-time equivalent academic and non-academic staff, non-labour expenditure and undergraduate and postgraduate student load and the outputs are undergraduate, postgraduate and PhD completions, national competitive and industry grants and publications. Using Malmquist indices, productivity growth is decomposed into technical efficiency and technological change. The results indicate that annual productivity growth averaged 3.3 percent across all universities, with a range between -1.8 percent and 13.0 percent, and was largely attributable to technological progress. However, separate analyses of research-only and teaching-only productivity indicate that most of this gain was attributable to improvements in research-only productivity associated with pure technical and some scale efficiency improvements. While teaching-only productivity also contributed, the largest source of gain in that instance was technological progress offset by a slight fall in technical efficiency.

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Bibliographic Info

Paper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 195.

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Date of creation: 15 Jun 2005
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Handle: RePEc:qut:dpaper:195

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Web page: http://www.bus.qut.edu.au/faculty/economics/
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Keywords: Productivity; technical and scale efficiency; technological progress; Malmquist indices; universities.;

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References

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  1. Geraint Johnes, 1995. "Scale and technical efficiency in the production of economic research," Applied Economics Letters, Taylor & Francis Journals, vol. 2(1), pages 7-11.
  2. Andrew Worthington, 2001. "An Empirical Survey of Frontier Efficiency Measurement Techniques in Education," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 245-268.
  3. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
  4. Worthington, Andrew C., 1999. "Malmquist indices of productivity change in Australian financial services," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 9(3), pages 303-320, August.
  5. Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February.
  6. Johnes, Jill & Johnes, Geraint, 1995. "Research funding and performance in U.K. University Departments of Economics: A frontier analysis," Economics of Education Review, Elsevier, vol. 14(3), pages 301-314, September.
  7. Antreas Athanassopoulos & Estelle Shale, 1997. "Assessing the Comparative Efficiency of Higher Education Institutions in the UK by the Means of Data Envelopment Analysis," Education Economics, Taylor & Francis Journals, vol. 5(2), pages 117-134.
  8. Gary Madden & Scott Savage & Steven Kemp, 1997. "Measuring Public Sector Efficiency: A Study of Economics Departments at Australian Universities," Education Economics, Taylor & Francis Journals, vol. 5(2), pages 153-168.
  9. Juan Ventura & Eduardo GonzáLez & Ana Cárcaba, 2004. "Efficiency and Program-Contract Bargaining in Spanish Public Hospitals," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(4), pages 549-573, December.
  10. G. Johnes & J. Johnes, . "Measuring the Research Performance of UK Economics Departments: An Application of Data Envelopment Analysis," Working Papers ec17/90, Department of Economics, University of Lancaster.
  11. 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.
  12. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  13. Bernhard Mahlberg & Thomas Url, . "Effects of the Single Market on the Austrian Insurance Industry," WIFO Working Papers 97, WIFO.
  14. Nikolaos Maniadakis & Emmanuel Thanassoulis, 2000. "Assessing productivity changes in UK hospitals reflecting technology and input prices," Applied Economics, Taylor & Francis Journals, vol. 32(12), pages 1575-1589.
  15. Malcolm Abbott & Hristos Doucouliagos, 2004. "Research output of Australian universities," Education Economics, Taylor & Francis Journals, vol. 12(3), pages 251-265.
  16. Johnes, Jill, 2006. "Data envelopment analysis and its application to the measurement of efficiency in higher education," Economics of Education Review, Elsevier, vol. 25(3), pages 273-288, June.
  17. A. T. Flegg & D. O. Allen & K. Field & T. W. Thurlow, 2004. "Measuring the efficiency of British universities: a multi-period data envelopment analysis," Education Economics, Taylor & Francis Journals, vol. 12(3), pages 231-249.
  18. Sturm, Jan-Egbert & Williams, Barry, 2004. "Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience," Journal of Banking & Finance, Elsevier, vol. 28(7), pages 1775-1799, July.
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Citations

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Cited by:
  1. Boon L. Lee, 2011. "Efficiency of Research Performance of Australian Universities: A Reappraisal using a Bootstrap Truncated Regression Approach," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 41(3), pages 195-204, December.
  2. Boon L Lee, 2012. "Efficiency and Productivity of Singapore's Manufacturing Sector 2001-2010: An analysis using Simar and Wilson's (2007) bootstrapped truncated approach," School of Economics and Finance Discussion Papers and Working Papers Series 283, School of Economics and Finance, Queensland University of Technology.
  3. 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.
  4. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
  5. Boon Lee, 2011. "Productivity, Technical and Efficiency Change in Singapore's Services Sector, 2005 to 2008," School of Economics and Finance Discussion Papers and Working Papers Series 269, School of Economics and Finance, Queensland University of Technology.
  6. NG, Ying Chu & LI, Sung-ko, 2009. "Efficiency and productivity growth in Chinese universities during the post-reform period," China Economic Review, Elsevier, vol. 20(2), pages 183-192, June.
  7. Barra, Cristian & Zotti, Roberto, 2014. "Handling negative data using Data Envelopment Analysis: a directional distance approach applied to higher education," MPRA Paper 55570, University Library of Munich, Germany.
  8. Ahmed, Elsadig Musa & Krishnasamy, Geeta, 2013. "Are Asian technology gaps due to human capital quality differences?," Economic Modelling, Elsevier, vol. 35(C), pages 51-58.
  9. Boon Lee, 2013. "Productivity Performance of Singapore’s Retail Sector: A Two-Stage Non-Parametric Approach," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 43(1), pages 67-78, March.

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