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Do Institutions Matter for University Cost Efficiency? Evidence from Germany

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  • Gerhard Kempkes

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) Copyright , Oxford University Press.

Suggested Citation

  • Gerhard Kempkes, 2008. "Do Institutions Matter for University Cost Efficiency? Evidence from Germany," CESifo Economic Studies, CESifo, vol. 54(2), pages 177-203, June.
  • 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. 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.
    3. 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.
    4. Alexander Eck & Sabine Gralka & Julia Sonnenburg, 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.
    5. 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.
    6. 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.

    More about this item

    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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