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The Economic Efficiency of Swedish Higher Education Institutions


  • Daghbashyan, Zara

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)


Using parametric frontier techniques, this paper investigates the economic efficiency of Swedish higher education institutions (HEIs) with an attempt to determine the factors causing efficiency differences. The analysis is conducted for 30 HEIs over the time period 2001-2005. A set of HEI organizational factors as well as faculty and student compositions are examined as potential determinants of economic efficiency. According to the estimates, half of the Swedish HEIs have above average efficiency of 85 percent. The economic efficiency is positively affected by HEI size, the number of students per faculty and a high proportion of young professors in the faculty. Another interesting finding is that the source of financing matters for efficient use of resources; in particular, HEIs with a higher level of government support are found to be less efficient.

Suggested Citation

  • Daghbashyan, Zara, 2011. "The Economic Efficiency of Swedish Higher Education Institutions," Working Paper Series in Economics and Institutions of Innovation 245, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 17 Dec 2012.
  • Handle: RePEc:hhs:cesisp:0245

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    Cited by:

    1. Erkoc, Taptuk Emre, 2013. "Estimating Economic Efficiencies of Public Sector Organisations with Stochastic Frontier Analysis: Evidence from Turkish Higher Education," MPRA Paper 54101, University Library of Munich, Germany.
    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. Shukhrat Kholmuminov & Robert E Wright, 2017. "Cost efficiency analysis of public higher education institutions in Uzbekistan," Working Papers 1704, University of Strathclyde Business School, Department of Economics.

    More about this item


    Cost efficiency; Stochastic Frontier Analysis; Universities;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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