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Evaluating the efficiency of Italian public universities (2008-2011) in presence of (unobserved) heterogeneity

Author

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  • Tommaso Agasisti

    (Politecnico di Milano)

  • Cristian Barra

    (Università di Salerno)

  • Roberto Zotti

    (Università di Salerno)

Abstract

In assessing universities’ performances, the most recent literature underlined that the efficiency scores may suffer from the presence of incidental parameters or time-invariant, often unobservable, effects that lead to biased efficiency estimates. To deal with this problem, we apply a procedure developed by Wang and Ho (2010), for estimating the efficiency in Italian higher education through a multi-output parametric distance function. We show that models which do not consider unobservable heterogeneity tend to estimate higher efficiency scores; we also study the determinants of efficiency. The findings provide a clue towards the expansion of pro-competitive policies in the Italian higher education sector, consistently with the interpretation that when market forces operate, there are benefits for university efficiency. When exploring differences in universities’ performances, by geographical areas, we claim that maintaining State-level policies can be detrimental for overall efficiency, and instead special interventions for universities in the South should be designed.

Suggested Citation

  • Tommaso Agasisti & Cristian Barra & Roberto Zotti, 2015. "Evaluating the efficiency of Italian public universities (2008-2011) in presence of (unobserved) heterogeneity," Working papers 34, Società Italiana di Economia Pubblica.
    • Handle: RePEc:ipu:wpaper:34
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    18. Doddy Ismunandar Bahari & Hermanto Siregar & Sahara Sahara & Handewi Purwati Saliem Rachman, 2019. "Impact of Agricultural Sectors and Income Inequality in Rural Toward Role of Public Education in Decreasing Educational Inequality in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 151-159.
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    More about this item

    Keywords

    efficiency; unobserved heterogeneity; higher education;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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