The Impact of Regional Endowment and University Characteristics on University Efficiency

20 Pages Posted: 7 Feb 2005 Last revised: 19 Oct 2010

See all articles by Erik E. Lehmann

Erik E. Lehmann

University of Augsburg - Faculty of Business and Economics

Susanne Warning

University of Augsburg

Date Written: October 17, 2010

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.

Keywords: efficiency, data envelopment analysis, resource allocation, teaching and research, regional endowment

JEL Classification: I21

Suggested Citation

Lehmann, Erik E. and Warning, Susanne, The Impact of Regional Endowment and University Characteristics on University Efficiency (October 17, 2010). Available at SSRN: https://ssrn.com/abstract=393780 or http://dx.doi.org/10.2139/ssrn.393780

Erik E. Lehmann (Contact Author)

University of Augsburg - Faculty of Business and Economics ( email )

Universitätsstr. 16
Augsburg, 86135
Germany

Susanne Warning

University of Augsburg ( email )

University street
Augsburg, 86139
Germany

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