Heterogeneity and the evaluation of efficiency: the case of Italian universities
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.
Document Type: Research Article
Affiliations: 1: Politecnico di Milano, Department of Management, Economics and Industrial Engineering, 20133 Milano, Italy 2: Lancaster University Management School, Lancaster, LA1 4YX, United Kingdom
Publication date: April 1, 2010