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Data Envelopment Analysis of Relative Efficiencies of Public Institutions of Higher Learning

Author

Listed:
  • Joseph Calhoun

    (Florida State University, Department of Economics)

  • Joshua Hall

    (West Virginia University, College of Business and Economics)

Abstract

There has been considerable public debate surrounding the efficiency of higher education in the United States. Using Data Envelopment Analysis, we look at the efficiency of a majority of the institutions of higher learning in the United States. Using two different approaches, we find some evidence that private institutions of higher learning are more efficient than public ones. In particular, masters and bachelors-granting institutions with unrestricted revenue greater than 85% are more efficient than those with less than 85%. Public institutions tend to have more restricted funding, suggesting that their stakeholders constrain them from operating on the frontier.

Suggested Citation

  • Joseph Calhoun & Joshua Hall, 2013. "Data Envelopment Analysis of Relative Efficiencies of Public Institutions of Higher Learning," Working Papers 13-06, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:13-06
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    File URL: http://busecon.wvu.edu/phd_economics/pdf/13-06.pdf
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    References listed on IDEAS

    as
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    6. Breu, Theodore M. & Raab, Raymond L., 1994. "Efficiency and perceived quality of the nation's "top 25" National Universities and National Liberal Arts Colleges: An application of data envelopment analysis to higher education," Socio-Economic Planning Sciences, Elsevier, vol. 28(1), pages 33-45.
    7. 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.
    8. Ahn, Taesik & Charnes, Abraham & Cooper, William W., 1988. "Some statistical and DEA evaluations of relative efficiencies of public and private institutions of higher learning," Socio-Economic Planning Sciences, Elsevier, vol. 22(6), pages 259-269.
    9. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
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    Cited by:

    1. Eduardo Minuci & Amir B. Ferreira Neto & Joshua Hall, 2017. "Efficiency, But At What Cost? Evidence from a DEA Analysis of WV School Districts," Working Papers 17-28, Department of Economics, West Virginia University.

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    More about this item

    Keywords

    Data Envelopment Analysis; Productivity; Higher Education;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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