Effects of Financial Source Dependency on Public University Operating Efficiencies: Data Envelopment Single-Stage and Tobit Two-Stage Evaluations
Managing publicly owned universities has necessitated year after year adjustments to shifts in the dependency on alternative financing sources. The global financial crisis bought new managerial operating challenges with an accelerated decline in government funding and a quick evaporation of investment income. But, in many cases, regulatory constraints prevented offsetting tuition increases. This paper investigates how differences in university finances potentially affect operating efficiencies. The analysis uses panel data on 331 universities for academic years 2005-2009. Because finances are only partially under the control of university management, they are treated as quasi environmental in the implementation of data envelopment estimation of efficiencies. Single stage DEA estimates are, therefore, generated with university financial environments included under one model and excluded under another model. Results are compared to a Tobit two-stage analysis in which first-stage efficiencies are used along with financial environments. Findings indicate that greater tuition dependency promotes inefficiency while increased government funding yields efficiency gains. Investment income also appears to have a slight negative effect, albeit statistically weak. Despite recent financial shocks, the results reveal public university efficiencies have improved over time.
Volume (Year): 3 (2013)
Issue (Month): (February)
|Contact details of provider:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
Web page: http://www.bapress.ca
|Order Information:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Yang, Hongliang & Pollitt, Michael, 2009.
"Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants,"
European Journal of Operational Research,
Elsevier, vol. 197(3), pages 1095-1105, September.
- Yang, H. & Pollitt, M., 2007. "Incorporating Both Undesirable Outputs and Uncontrollable Variables into DEA: the Performance of Chinese Coal-Fired Power Plants," Cambridge Working Papers in Economics 0733, Faculty of Economics, University of Cambridge.
- Bhattacharyya, Arunava & Lovell, C. A. K. & Sahay, Pankaj, 1997. "The impact of liberalization on the productive efficiency of Indian commercial banks," European Journal of Operational Research, Elsevier, vol. 98(2), pages 332-345, April.
- 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.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Gerhard Kempkes & Carsten Pohl, 2010. "The efficiency of German universities-some evidence from nonparametric and parametric methods," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2063-2079.
- Kempkes, Gerhard & Pohl, Carsten, 2006. "The Efficiency of German Universities Some Evidence from Non-Parametric and Parametric Methods," Dresden Discussion Paper Series in Economics 08/06, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
- 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.
- Melville McMillan & Wing Chan, 2006. "University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non-stochastic Methods," Education Economics, Taylor & Francis Journals, vol. 14(1), pages 1-30.
- Colbert, Amy & Levary, Reuven R. & Shaner, Michael C., 2000. "Determining the relative efficiency of MBA programs using DEA," European Journal of Operational Research, Elsevier, vol. 125(3), pages 656-669, September.
- Korhonen, Pekka & Tainio, Risto & Wallenius, Jyrki, 2001. "Value efficiency analysis of academic research," European Journal of Operational Research, Elsevier, vol. 130(1), pages 121-132, April.
- P. Korhonen & R. Tainio & J. Wallenius, 1998. "Value Efficiency Analysis of Academic Research," Working Papers ir98032, International Institute for Applied Systems Analysis.
- G. Thomas Sav, 2004. "Higher education costs and scale and scope economies," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 607-614.
- Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
- 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.
- Emrouznejad, Ali & Parker, Barnett R. & Tavares, Gabriel, 2008. "Evaluation of research in efficiency and productivity: A survey and analysis of the first 30 years of scholarly literature in DEA," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 151-157, September.
- Tommaso Agasisti & Geraint Johnes, 2009. "Beyond frontiers: comparing the efficiency of higher education decision-making units across more than one country," Education Economics, Taylor & Francis Journals, vol. 17(1), pages 59-79.
- Léopold Simar & Paul Wilson, 2011. "Two-stage DEA: caveat emptor," Journal of Productivity Analysis, Springer, vol. 36(2), pages 205-218, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:bap:journl:130106. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.