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Study on the efficiency and effectiveness of public spending on tertiary education

Author

Listed:
  • Miguel St. Aubyn
  • álvaro Pina
  • Filomena Garcia
  • Joana Pais

Abstract

The purpose of the study is to assess efficiency in public tertiary education systems across EU countries plus Japan and the US with semi-parametric methods and stochastic frontier analysis. The study identifies a core group of efficient countries. A good quality secondary system, output-based funding rules, institutions' independent evaluation and staff policy autonomy are positively related to efficiency. Moreover, the study provides evidence that public spending on tertiary education is more effective in what concerns labour productivity growth and employability when it is coupled with efficiency.

Suggested Citation

  • Miguel St. Aubyn & álvaro Pina & Filomena Garcia & Joana Pais, 2009. "Study on the efficiency and effectiveness of public spending on tertiary education," European Economy - Economic Papers 2008 - 2015 390, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  • Handle: RePEc:euf:ecopap:0390
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    File URL: http://ec.europa.eu/economy_finance/publications/pages/publication16267_en.pdf
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    Citations

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    Cited by:

    1. Joanna Wolszczak-Derlacz, 2015. "Analysis of efficiency of European and American higher education institutions - nonparametric approach," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 40.
    2. Kose,Ayhan & Ohnsorge,Franziska Lieselotte & Ye,Lei Sandy & Islamaj,Ergys, 2017. "Weakness in investment growth : causes, implications and policy responses," Policy Research Working Paper Series 7990, The World Bank.
    3. Sylke V. Schnepf, 2015. "University dropouts and labor market success," IZA World of Labor, Institute for the Study of Labor (IZA), pages 182-182, September.
    4. Boris Cournède & Antoine Goujard & Álvaro Pina, 2013. "How to Achieve Growth- and Equity-friendly Fiscal Consolidation?: A Proposed Methodology for Instrument Choice with an Illustrative Application to OECD Countries," OECD Economics Department Working Papers 1088, OECD Publishing.
    5. António Afonso & Ana Venâncio, 2016. "The relevance of commuting zones for regional spending efficiency," Applied Economics, Taylor & Francis Journals, vol. 48(10), pages 865-877, February.
    6. Maria Cristiana Martini & Luigi Fabbris, 2017. "Beyond Employment Rate: A Multidimensional Indicator of Higher Education Effectiveness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 351-370, January.
    7. repec:wfo:monber:y:2017:i:9:p:677-699 is not listed on IDEAS
    8. Andrea Conte, 2013. "Determinants of policy reforms in the fields of R&D, education and innovation: EU-27 evidence during the Lisbon Decade," Chapters,in: Governance, Regulation and Innovation, chapter 5, pages 122-146 Edward Elgar Publishing.
    9. Wolszczak, Joanna, 2014. "An evaluation and explanation of (in)efficiency in higher education institutions in Europe and the U.S. with the application of two-stage semi-parametric DEA," Institute for Research on Labor and Employment, Working Paper Series qt7c87d4hk, Institute of Industrial Relations, UC Berkeley.
    10. Amalia N. DUȚU & Mihaela I. DIACONU, 2013. "The Quality Of Graduates, Employers And Higher Education," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 2, pages 66-76, October.
    11. Mariana Cunha & Vera Rocha, 2012. "On the Efficiency of Public Higher Education Institutions in Portugal: An Exploratory Study," FEP Working Papers 468, Universidade do Porto, Faculdade de Economia do Porto.
    12. António Afonso & Alma Romero & Emma Monsalve, 2013. "Public sector efficiency: evidence for Latin America," Working Papers Department of Economics 2013/20, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    13. Schnepf, Sylke V., 2014. "Do Tertiary Dropout Students Really Not Succeed in European Labour Markets?," IZA Discussion Papers 8015, Institute for the Study of Labor (IZA).
    14. Djedje Hermann Yohou, 2015. "In Search of Fiscal Space in Africa: The Role of the Quality of Government Spending," Working Papers halshs-01222812, HAL.
    15. Calogero Guccio & Marco Ferdinando Martorana & Luisa Monaco, 2016. "Evaluating the impact of the Bologna Process on the efficiency convergence of Italian universities: a non-parametric frontier approach," Journal of Productivity Analysis, Springer, vol. 45(3), pages 275-298, June.
    16. repec:cmj:journl:y:2013:i:29:dutu is not listed on IDEAS
    17. António Afonso, & Mina Kazemi, 2016. "Assessing Public Spending Efficiency in 20 OECD Countries," Working Papers Department of Economics 2016/12, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    18. World Bank Group, 2017. "Global Economic Prospects, January 2017," World Bank Publications, The World Bank, number 25823.
    19. International Monetary Fund, 2010. "Czech Republic; Selected Issues Paper," IMF Staff Country Reports 10/59, International Monetary Fund.
    20. Angela Stefania Bergantino & Enrico Musso, 2011. "The role of external factors versus managerial ability in determining seaports’ relative efficiency: An input-by-input analysis through a multi-step approach on a panel of Southern European ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 13(2), pages 121-141, June.
    21. Guccio, Calogero & Martorana, Marco & Monaco, Luisa, 2013. "Evaluating italian university teaching efficiency convergence: a non-parametric frontier approach," MPRA Paper 56673, University Library of Munich, Germany.
    22. repec:eee:respol:v:46:y:2017:i:9:p:1595-1605 is not listed on IDEAS
    23. Calogero Guccio & Marco Ferdinando Martorana & Isidoro Mazza, 2016. "Efficiency assessment and convergence in teaching and research in Italian public universities," Scientometrics, Springer;Akadémiai Kiadó, vol. 107(3), pages 1063-1094, June.

    More about this item

    Keywords

    Efficiency; effectiveness; public spending; tertiary education; Universities; Study on the efficiency and effectiveness of public spending on tertiary education;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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