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Persistent inefficiency in the higher education sector: evidence from Germany

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  • Sabine Gralka

Abstract

Utilizing panel data and taking heterogeneity and persistent inefficiency into account, we show the limitations of standard efficiency analysis for higher education institutions. It is the first time that the concept of long-term inefficiency is considered in the analysis of traditional universities. This inclusion allows for more accurate estimations and more purposeful policy recommendations. The new specification improves the accuracy of the heterogeneity assumption and exposes inefficiency’s tendency to be persistent. Thus, this paper finds that an efficiency increase can be achieved only if future measures aim at long-term conditions, which are presumably determined outside of individual institutions.

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  • Sabine Gralka, 2018. "Persistent inefficiency in the higher education sector: evidence from Germany," Education Economics, Taylor & Francis Journals, vol. 26(4), pages 373-392, July.
    • Handle: RePEc:taf:edecon:v:26:y:2018:i:4:p:373-392
    DOI: 10.1080/09645292.2017.1420754
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    Cited by:

    1. Gralka, Sabine & Wohlrabe, Klaus & Bornmann, Lutz, 2017. "The Completion Shift of German Universities of Applied Sciences," MPRA Paper 82794, University Library of Munich, Germany.
    2. 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.
    3. 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).
    4. Klaus Wohlrabe & Sabine Gralka, 2020. "Using archetypoid analysis to classify institutions and faculties of economics," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(1), pages 159-179, 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. Tommaso Agasisti & Sabine Gralka, 2019. "The transient and persistent efficiency of Italian and German universities: a stochastic frontier analysis," Applied Economics, Taylor & Francis Journals, vol. 51(46), pages 5012-5030, October.
    7. Lutz Bornmann & Klaus Wohlrabe & Sabine Gralka, 2019. "The graduation shift of German universities of applied sciences," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-19, January.
    8. Klaus Wohlrabe & Sabine Gralka & Lutz Bornmann, 2019. "Zur Effizienz deutscher Universitäten und deren Entwicklung zwischen 2004 und 2015," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(21), pages 15-21, November.
    9. Oleg Badunenko & Deni Mazrekaj & Subal C. Kumbhakar & Kristof Witte, 2021. "Persistent and transient inefficiency in adult education," Empirical Economics, Springer, vol. 60(6), pages 2925-2942, June.
    10. 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.
    11. Tran, Carolyn D.T.T. & Battese, George E. & Villano, Renato A., 2020. "Administrative capacity assessment in higher education: The case of universities in Vietnam," International Journal of Educational Development, Elsevier, vol. 77(C).
    12. Manuel Salas‐Velasco, 2020. "Assessing the performance of Spanish secondary education institutions: Distinguishing between transient and persistent inefficiency, separated from heterogeneity," Manchester School, University of Manchester, vol. 88(4), pages 531-555, July.
    13. 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

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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