Abstract

This paper analyses the efficiency of Argentinean public universities and its determinants over a 10-year period (2004–2013). We quantify the effect on the efficiency scores of a set of institutional variables, i.e. policy decisions under the control of universities. Efficiency scores are determined on a first stage using nonparametric Data Envelopment Analysis and then we conduct a second stage study through parametric modelling. The results reveal the existence of a positive and significant effect on efficiency levels of those variables related to high-ranked professors and full-time positions, while those variables associated with budget allocation do not significantly affect the efficiency. Our empirical findings help identifying the characteristics that explain differences in the efficiency of public universities, providing new elements in studying the higher education system in Argentina.

Highlights

  • Universities, as a particular type of organization within the structure of the Higher Education System, have become significantly relevant in explaining some of the causes of the development achieved in different countries over the last years

  • The literature has focused on the efficiency levels of Higher Education Institutions (HEI), as well as on the main factors that might account for the calculated efficiency rates

  • 4.1 First stage: Data Envelopment Analysis (DEA) 2004–20013 Table 2 shows the results of the DEA conducted in the first stage, reporting the annual efficiency scores h∗jt obtained by applying the output-oriented DEA with Variable Returns to Scale (Banker et al 1984) from 2004 to 2013.12 The last three columns of Table 2 report the minimum, maximum and mean values, respectively, of h∗jt across years for each university j = 1, . . . , 30

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Summary

Introduction

Universities, as a particular type of organization within the structure of the Higher Education System, have become significantly relevant in explaining some of the causes of the development achieved in different countries over the last years. The literature has focused on the efficiency levels of Higher Education Institutions (HEI), as well as on the main factors that might account for the calculated efficiency rates. In this regard, DEA has been one of the most widely used techniques to estimate efficiency and explain the influence of each input and output in obtaining the coefficient (Liu et al 2013). Efficiency measurement in higher education institutions in Argentina has gained interest over the last few years, especially due to the major expansion of the university system.. Efficiency measurement in higher education institutions in Argentina has gained interest over the last few years, especially due to the major expansion of the university system. This growth has been substantiated by two phenomena: the creation of new public universities (9 new National Universities in the nineties and 11 in the period 2002–2010) and, the budget increase allocated to education by the National State (a budget equivalent to 6% of Gross Domestic Product must be assigned to education according to the educational financing law since 2005)

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