Efficiency In Public Higher Education: A Stochastic Frontier Analysis Considering Heterogeneity

  • Vanesa D'Elia Universidad del CEMA (UCEMA)
  • Gustavo Ferro Universidad del CEMA (UCEMA) & CONICET
Keywords: Universities’ Teaching Efficiency, Stochastic Frontier Analysis, SFA, Heterogeneity, Efficiency Frontiers, Education

Abstract

We aim to study technical efficiency of undergraduate teaching activity in national (public) universities in Argentina. We employ a stochastic frontier analysis (SFA) with a panel of 37 national universities over 2005-2013. We compare models that do not account for heterogeneity with heterogeneity-extended SFA models. We find from 18 percent to 25 percent of inefficiency on average in terms of lost outcomes (graduates) depending on the specification, with high dispersion among universities. Models considering heterogeneity report the highest levels of technical efficiency. Besides, the results show evidence of heterogeneity both observed and unobserved. Our estimates are robust to different specifications.

Author Biography

Gustavo Ferro, Universidad del CEMA (UCEMA) & CONICET
Associate Professor Universidad del CEMA (UCEMA) and Independent Research CONICET
Published
2021-11-15
How to Cite
D’Elia, V., & Ferro, G. (2021). Efficiency In Public Higher Education: A Stochastic Frontier Analysis Considering Heterogeneity. Economic Analysis Review, 36(2), 21-51. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/704
Section
Articles