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Efficiency vs effectiveness: an analysis of tertiary education across Europe

Author

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  • Ozana Nadoveza Jelic

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia)

  • Margareta Gardijan Kedzo

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia)

Abstract

This paper deals with tertiary education efficiency and effectiveness across 24 European Union countries in four sub-periods between 2004 and 2015. The efficiency scores are computed using Data Envelopment Analysis (DEA). We try to raise awareness of the quality, and not of the quantity, of educational outputs and inputs by introducing quality-based correction of the DEA efficiency score, which we regard as effectiveness. Our results show that quality considerations affect the relative positions of countries regarding their efficiency scores. In other words, some less developed countries, which are efficient in the quantity-based model, fail to reach the defined efficiency border when considering some quality indicators of outputs. On the other hand, some inefficient developed countries increase their DEA-based ranking and achieve effectiveness (quality-based efficiency). The same is true for input quality considerations. Since tertiary education cannot be expected to provide the same quality of outcomes with different input qualities, efficiency improves (deteriorates) in the input-output quality-based model in many countries with low (high) quality student bases.

Suggested Citation

  • Ozana Nadoveza Jelic & Margareta Gardijan Kedzo, 2018. "Efficiency vs effectiveness: an analysis of tertiary education across Europe," Public Sector Economics, Institute of Public Finance, vol. 42(4), pages 381-414.
    • Handle: RePEc:ipf:psejou:v:42:y:2018:i:4:p:381-414
    DOI: 10.3326/pse.42.4.2
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    2. Kristina Stefanova & Nikolay Velichkov, 2020. "Analysis of the Efficiency of Tertiary Education Expenditure in European Union Member States from Central and Eastern Europe: An Efficiency Frontier Approach," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(1), pages 115-128.
    3. Marilena-Aura DIN & Cristina COCULESCU, 2019. "On Efficiency Of Higher Education With Data Envelopment Analysis And Regression," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 399-408, November.
    4. Marius Sorin Dincă & Gheorghiţa Dincă & Maria Letiţia Andronic & Anna Maria Pasztori, 2021. "Assessment of the European Union’s Educational Efficiency," Sustainability, MDPI, vol. 13(6), pages 1-29, March.

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    More about this item

    Keywords

    tertiary education; data envelopment analysis; educational efficiency and effectiveness; EU;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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