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Do Institutions Matter for University Cost Efficiency? Evidence from Germany

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  • Gerhard Kempkes
  • Carsten Pohl

Abstract

Efficiency analyses on higher education institutions have so far primarily focussed on the identification of inefficiency and less on the explanation of differences in efficiency performance. In this article, we study the impact of institutional factors on the efficiency of 67 publicly financed German universities for the years 1998–2003. We present some evidence that university costs and outputs are correlated with institutional settings such as the management structure of universities or the universities’ staff body. Furthermore, econometric evidence from a single-stage stochastic frontier model (based on a cost function) suggests that universities which are located in states with a comparatively liberal university legal framework are more efficient than those universities operating under more restrictive state regulation. (JEL codes: l28, L32, H72)

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  • Gerhard Kempkes & Carsten Pohl, 2008. "Do Institutions Matter for University Cost Efficiency? Evidence from Germany," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 177-203.
  • Handle: RePEc:oup:cesifo:v:54:y:2008:i:2:p:177-203.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifn009
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    Cited by:

    1. Erik E. Lehmann & Michele Meoli & Stefano Paleari & Sarah A. E. Stockinger, 2018. "Approaching effects of the economic crisis on university efficiency: a comparative study of Germany and Italy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 37-54, March.
    2. Shaker, Saber Adly, 2012. "أثر العوامل المؤسسية على تنافسية خدمات التعليم العالي [The Impact of Institutional Factors on The Higher Education Competitiveness]," MPRA Paper 82412, University Library of Munich, Germany.
    3. Wohlrabe, Klaus & Bornmann, Lutz & de Moya Anegon, Felix, 2017. "Wie effizient sind Universitäten in Deutschland, deren Zukunftskonzepte im Rahmen der Exzellenzinitiative ausgezeichnet wurden? Ein empirischer Vergleich von Input- und Output-Daten zur Forschung [," MPRA Paper 76218, University Library of Munich, Germany.
    4. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    5. Frederick van der Ploeg, 2008. "Towards Evidence-based Reform of European Universities," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 99-120, June.
    6. Klaus Wohlrabe & Lutz Bornmann & Sabine Gralka & Felix de Moya Anegon, 2018. "Wie effizient forschen Universitäten in Deutschland, deren Zukunftskonzepte im Rahmen der Exzellenzinitiative ausgezeichnet wurden?," ifo Working Paper Series 253, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    7. Alexander Eck & Sabine Gralka & Julia Sonnenburg & Wolfgang Nagl & Joachim Ragnitz, 2015. "Hochschulfinanzierung in Mecklenburg-Vorpommern," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 75.
    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. Alexander Eck & Sabine Gralka & Julia Heller, 2015. "Zur Effizienz der Hochschulen in den ost- und westdeutschen Flächenländern," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(02), pages 33-41, April.
    10. Brennan, Shae & Haelermans, Carla & Ruggiero, John, 2014. "Nonparametric estimation of education productivity incorporating nondiscretionary inputs with an application to Dutch schools," European Journal of Operational Research, Elsevier, vol. 234(3), pages 809-818.
    11. Omphile Temoso & Lindikaya W. Myeki, 2023. "Estimating South African Higher Education Productivity and Its Determinants Using Färe-Primont Index: Are Historically Disadvantaged Universities Catching Up?," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(2), pages 206-227, March.
    12. Cantner, Uwe & Grashof, Nils & Grebel, Thomas & Zhang, Xijie, 2023. "When Excellence is not Excellent: The Impact of the Excellence Initiative on the Relative Productivity of German Universities," MPRA Paper 118139, University Library of Munich, Germany.
    13. Orosco Gavilán, Juan Carlos & Lopes Moreira Da Veiga, María Helena & Wiper, Michael Peter, 2023. "Measuring efficiency of Peruvian universities: a stochastic frontier analysis," DES - Working Papers. Statistics and Econometrics. WS 36250, Universidad Carlos III de Madrid. Departamento de Estadística.
    14. Sabine Gralka & Klaus Wohlrabe & Lutz Bornmann, 2018. "How to Measure Research Efficiency in Higher Education? Research Grants vs. Publication Output," CESifo Working Paper Series 7055, CESifo.

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    More about this item

    Keywords

    Higher education; institutions; cost efficiency; stochastic frontier;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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