Heterogeneity and the Evaluation of Efficiency: The Case of Italian Universities
20 Pages Posted: 1 Nov 2006 Last revised: 13 Nov 2010
Date Written: 2006
Abstract
A random parameters stochastic frontier model is applied to Italian data in order to evaluate the cost function and efficiency of higher education institutions. The method yields useful information about inter-institutional variation in cost structure and technical efficiency. Returns to scale and scope are evaluated for the typical university, and it is found that these returns are almost ubiquitously decreasing, a finding with clear policy implications.
Keywords: stochastic frontier, random parameter models, costs, higher education
JEL Classification: C14, C23, C51, D20, I20
Suggested Citation: Suggested Citation
Johnes, Geraint and Agasisti, Tommaso, Heterogeneity and the Evaluation of Efficiency: The Case of Italian Universities (2006). Applied Economics, Vol. 42, No. 11, 2010, Available at SSRN: https://ssrn.com/abstract=941172
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