IDEAS home Printed from https://ideas.repec.org/p/wlu/wpaper/eg0040.html
   My bibliography  Save this paper

University Efficiency: A Comparison of Results from Stochastic and Non-Stochastic Methods

Author

Listed:

Abstract

Efficiency scores are determined for Canadian universities using both Data Envelopment Analysis (DEA) and stochastic frontier (SF) methods for selected specifications. The scores are compared. Although there is some consistency, there is also considerable divergence in the efficiency scores and their rankings. Besides choice of the DEA or SF method, scores are sensitive to the definition of output, the inclusion of environmental (i.e., primarily firm-specific) factors, and the procedures for their inclusion (one-stage and two-stage methods). Despite the divergence among methods and specifications noted, the relative positions of individual universities across sets of several efficiency rankings (e.g., all the DEA and SF outcomes) demonstrate consistency. An analysis of rankings provides a range of potential rankings for each university. High and low efficiency groups are evidenced but the rank for most universities is not significantly different from that of many others. The results indicate that, while efficiency analysis can be helpful, decision makers need to be very cautious when employing efficiency scores for management and policy purposes and they recommend looking for confirmation of the usual efficiency analysis.

Suggested Citation

  • M.L. McMillan, W. Chan, 2005. "University Efficiency: A Comparison of Results from Stochastic and Non-Stochastic Methods," Working Papers eg0040, Wilfrid Laurier University, Department of Economics, revised 2005.
  • Handle: RePEc:wlu:wpaper:eg0040
    as

    Download full text from publisher

    File URL: http://www.wlu.ca/documents/6983/McMillan_Chan2003.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lucia Buzzigoli & Antonio Giusti & Alessandro Viviani, 2010. "The Evaluation of University Departments. A Case Study for Firenze," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(1), pages 24-38, February.
    2. Daghbashyan, Zara, 2009. "Do university units differ in the efficiency of resource utilization?," Working Paper Series in Economics and Institutions of Innovation 176, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 17 Dec 2012.

    More about this item

    Keywords

    tuition fees; enrollment;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wlu:wpaper:eg0040. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrei Kovacsik). General contact details of provider: http://edirc.repec.org/data/sbwluca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.