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A Cost Indirect Evaluation of Productivity Change in UK Universities

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  • J. Glass
  • Donal McKillop
  • Gary O'Rourke

Abstract

The study provides an empirical analysis of productivity change in publicly-funded UK universities, against a background of government policy specifically designed to enhance the productive efficiency of universities in the provision of teaching and research. The nonparametric analysis employs a cost indirect approach to measuring productivity change, taking explicit account of the quality of research output and decomposing productivity change into technical change and efficiency change. The latter is also decomposed into changes in pure technical efficiency, scale efficiency and output congestion. Changes in size efficiency are also computed. On average, productivity declined by 4% over 1989–92, mainly as a result of regressive technical change. Evidence of biased technological change was found, with the frontier shifting out in favour of the teaching outputs and in relative to the research output. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • J. Glass & Donal McKillop & Gary O'Rourke, 1998. "A Cost Indirect Evaluation of Productivity Change in UK Universities," Journal of Productivity Analysis, Springer, vol. 10(2), pages 153-175, October.
  • Handle: RePEc:kap:jproda:v:10:y:1998:i:2:p:153-175
    DOI: 10.1023/A:1018607223276
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    References listed on IDEAS

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    1. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    2. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    3. Maindiratta, Ajay, 1990. "Largest size-efficient scale and size efficiencies of decision-making units in data envelopment analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 57-72.
    4. 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.
    5. Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
    6. 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.
    7. 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.
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    Citations

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    Cited by:

    1. Rebecca Summary & William Weber, 2012. "Grade inflation or productivity growth? An analysis of changing grade distributions at a regional university," Journal of Productivity Analysis, Springer, vol. 38(1), pages 95-107, August.
    2. Kuo, Jenn-Shyong & Ho, Yi-Cheng, 2008. "The cost efficiency impact of the university operation fund on public universities in Taiwan," Economics of Education Review, Elsevier, vol. 27(5), pages 603-612, October.
    3. Valadkhani, Abbas & Worthington, Andrew, 2005. "Ranking and Clustering Australian University Research Performance, 1998-2002," Economics Working Papers wp05-19, School of Economics, University of Wollongong, NSW, Australia.
    4. Gimenez, Victor M. & Martinez, Jose Luis, 2006. "Cost efficiency in the university: A departmental evaluation model," Economics of Education Review, Elsevier, vol. 25(5), pages 543-553, October.
    5. Lehmann, Erik & Warning, Susanne, 2002. "Teaching or research? What affects the efficiency of universities," Discussion Papers, Series I 322, University of Konstanz, Department of Economics.
    6. Colin Glass, J. & McCallion, Gillian & McKillop, Donal G. & Rasaratnam, Syamarlah & Stringer, Karl S., 2006. "Implications of variant efficiency measures for policy evaluations in UK higher education," Socio-Economic Planning Sciences, Elsevier, vol. 40(2), pages 119-142, June.
    7. Ville, Simon & Valadkhani, Abbas & O'Brien, Martin, 2005. "The Distribution of Research Performance Across Australian Universities, 1992-2003, and Its Implications for Higher Education Funding Models," Economics Working Papers wp05-26, School of Economics, University of Wollongong, NSW, Australia.
    8. Mehdi Rhaiem, 2017. "Measurement and determinants of academic research efficiency: a systematic review of the evidence," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 581-615, February.
    9. Abramo, Giovanni & Cicero, Tindaro & D’Angelo, Ciriaco Andrea, 2011. "A field-standardized application of DEA to national-scale research assessment of universities," Journal of Informetrics, Elsevier, vol. 5(4), pages 618-628.
    10. Kraus, Margit, 2004. "Schätzung von Kostenfunktionen für die bundesdeutsche Hochschulausbildung: Ein konzeptioneller Ansatz im empirischen Test," ZEW Discussion Papers 04-36, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    11. Lovell, Knox, 2001. "Future Research Opportunities in Efficiency and Productivity Analysis," Efficiency Series Papers 2001/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

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