IDEAS home Printed from https://ideas.repec.org/p/zbw/auguow/0410.html
   My bibliography  Save this paper

The impact of regional endowment and university characteristics on university efficiency

Author

Listed:
  • Lehmann, Erik E.
  • Warning, Susanne

Abstract

This study examines the impact of both university characteristics and regional endowment factors on the efficiency of universities at providing teaching and research. Evidence from 94 universities located in different areas of the UK provides compelling evidence that factors beyond the control of the university management shape technical efficiency. In particular, we analyze whether regional endowment can disadvantage universities and thus reduce their efficiency in producing their outputs. Our overall results show that (i) universities are more efficient providers of teaching than research; (ii) the variation in efficiency is larger for research than for teaching, and (iii) student ability negatively correlates with the degree of inefficiency. Finally, we find compelling evidence that regional endowment significantly matters for teaching and research efficiency. While (iv) university characteristics significantly matter for research efficiency, (v) environmental factors or regional endowment strongly influence teaching, research, and overall efficiency.

Suggested Citation

  • Lehmann, Erik E. & Warning, Susanne, 2010. "The impact of regional endowment and university characteristics on university efficiency," UO Working Papers 04-10, University of Augsburg, Chair of Management and Organization.
  • Handle: RePEc:zbw:auguow:0410
    DOI: 10.2139/ssrn.393780
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/57892/1/68936976X.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.2139/ssrn.393780?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Johnes, Geraint & Johnes, Jill, 1993. "Measuring the Research Performance of UK Economics Departments: An Application of Data Envelopment Analysis," Oxford Economic Papers, Oxford University Press, vol. 45(2), pages 332-347, April.
    2. Antreas Athanassopoulos & Estelle Shale, 1997. "Assessing the Comparative Efficiency of Higher Education Institutions in the UK by the Means of Data Envelopment Analysis," Education Economics, Taylor & Francis Journals, vol. 5(2), pages 117-134.
    3. Avkiran, Necmi K., 2001. "Investigating technical and scale efficiencies of Australian Universities through data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 35(1), pages 57-80, March.
    4. Post, Thierry & Spronk, Jaap, 1999. "Performance benchmarking using interactive data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 115(3), pages 472-487, June.
    5. Audretsch, David B. & Lehmann, Erik E. & Warning, Susanne, 2005. "University spillovers and new firm location," Research Policy, Elsevier, vol. 34(7), pages 1113-1122, September.
    6. Melville L. McMillan & Debasish Datta, 1998. "The Relative Efficiencies of Canadian Universities: A DEA Perspective," Canadian Public Policy, University of Toronto Press, vol. 24(4), pages 485-511, December.
    7. Jerry G. Thursby, 2000. "What Do We Say about Ourselves and What Does It Mean? Yet Another Look at Economics Department Research," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 383-404, June.
    8. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    9. Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
    10. David Audretsch & Erik Lehmann & Susanne Warning, 2004. "University Spillovers: Does the Kind of Science Matter?," Industry and Innovation, Taylor & Francis Journals, vol. 11(3), pages 193-206.
    11. Susanne Warning, 2004. "Performance Differences in German Higher Education: Empirical Analysis of Strategic Groups," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(4), pages 393-408, June.
    12. Andrew C. Worthington & Helen Higgs, 2009. "Economies of Scale and Scope in Australian Higher Education, 1998-2006," Discussion Papers in Economics economics:200901, Griffith University, Department of Accounting, Finance and Economics.
    13. Abbott, M. & Doucouliagos, C., 2003. "The efficiency of Australian universities: a data envelopment analysis," Economics of Education Review, Elsevier, vol. 22(1), pages 89-97, February.
    14. Breu, Theodore M. & Raab, Raymond L., 1994. "Efficiency and perceived quality of the nation's "top 25" National Universities and National Liberal Arts Colleges: An application of data envelopment analysis to higher education," Socio-Economic Planning Sciences, Elsevier, vol. 28(1), pages 33-45.
    15. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    16. Kristiaan Kerstens & Philippe Vanden Eeckaut, 1999. "A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(1), pages 45-59.
    17. Geraint Johnes, 1995. "Scale and technical efficiency in the production of economic research," Applied Economics Letters, Taylor & Francis Journals, vol. 2(1), pages 7-11.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lehmann, Erik & Warning, Susanne, 2002. "Teaching or research? What affects the efficiency of universities," Discussion Papers, Series I 322, University of Konstanz, Department of Economics.
    2. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    3. Yolanda Fernández-Santos & Almudena Martínez-Campillo & José Miguel Fernández-Fernández, 2015. "Determinantes de la eficiencia en las universidades públicas españolas: un análisis DEA en dos etapas," Investigaciones de Economía de la Educación volume 10, in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 25, pages 491-508, Asociación de Economía de la Educación.
    4. Sanjeet Singh & Prabhat Ranjan, 2018. "Efficiency analysis of non-homogeneous parallel sub-unit systems for the performance measurement of higher education," Annals of Operations Research, Springer, vol. 269(1), pages 641-666, October.
    5. Renato A. Villano & Carolyn‐Dung T. T. Tran, 2021. "Survey on technical efficiency in higher education: A meta‐fractional regression analysis," Pacific Economic Review, Wiley Blackwell, vol. 26(1), pages 110-135, February.
    6. Manuel Salas-Velasco, 2020. "Measuring and explaining the production efficiency of Spanish universities using a non-parametric approach and a bootstrapped-truncated regression," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(2), pages 825-846, February.
    7. Mishra, Neelesh Kumar & Chakraborty, Abhishek & Singh, Sanjeet & Ranjan, Prabhat, 2023. "Efficiency analysis of engineering colleges in India: Decomposition into parallel sub-processes systems," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    8. Mehdi Rhaiem, 2017. "Measurement and determinants of academic research efficiency: a systematic review of the evidence," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 581-615, February.
    9. Martín Rivero, Raquel, 2007. "La eficiencia productiva en el ámbito universitario: aspectos claves para su evaluación/The Productive Efficiency in the University: Key Aspects for its Evaluation," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 25, pages 793-812, Diciembre.
    10. Johnes, Jill & Yu, Li, 2008. "Measuring the research performance of Chinese higher education institutions using data envelopment analysis," China Economic Review, Elsevier, vol. 19(4), pages 679-696, December.
    11. Y. c{C}inar, 2016. "Research and Teaching Efficiencies of Turkish Universities with Heterogeneity Considerations: Application of Multi-Activity DEA and DEA by Sequential Exclusion of Alternatives Methods," Papers 1701.07318, arXiv.org.
    12. Kerstin Pull & Birgit Pferdmenges & Uschi Backes-Gellner, 2017. "Do Research Training Groups Operate at Optimal Size?," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(2), pages 129-145, May.
    13. Mad Ithnin Salleh & Nurul Fadly Habidin & Abdul Halim Masnan & Nordin Mamat, 2017. "Estimating Technical Efficiency and Bootstrapping Malmquist Indices: Analysis of Malaysian Preschool Sector," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(3), pages 440-457, March.
    14. Yolanda Fernández-Santos & Almudena Martínez-Campillo & José Miguel Fernández-Fernández, 2016. "¿Son eficientes en docencia, investigación y transferencia de conocimiento las universidades públicas españolas? Medida y determinantes," Investigaciones de Economía de la Educación volume 11, in: José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), Investigaciones de Economía de la Educación 11, edition 1, volume 11, chapter 35, pages 637-652, Asociación de Economía de la Educación.
    15. Tzeremes, Nickolaos & Halkos, George, 2010. "A DEA approach for measuring university departments’ efficiency," MPRA Paper 24029, University Library of Munich, Germany.
    16. Thanassoulis, E. & Sotiros, D. & Koronakos, G. & Despotis, D., 2018. "Assessing the cost-effectiveness of university academic recruitment and promotion policies," European Journal of Operational Research, Elsevier, vol. 264(2), pages 742-755.
    17. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.
    18. Yolanda Fernández Santos & Almudena Martínez Campillo & José Miguel Fernández Fernández, 2013. "Evaluación de la eficiencia y el cambio de productividad en el sistema universitario público español tras la implantación de la LOU," Hacienda Pública Española / Review of Public Economics, IEF, vol. 205(2), pages 71-98, June.
    19. Ray, Subhash C. & Jeon, Yongil, 2008. "Reputation and efficiency: A non-parametric assessment of America's top-rated MBA programs," European Journal of Operational Research, Elsevier, vol. 189(1), pages 245-268, August.
    20. Lars Herberholz & Berthold U. Wigger, 2020. "Efficiency of European Universities: A Comparison of Peers," CESifo Working Paper Series 8044, CESifo.

    More about this item

    Keywords

    efficiency; data envelopment analysis; resource allocation; teaching and research; regional endowment;
    All these keywords.

    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:zbw:auguow:0410. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwaugde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.