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Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities

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  • G. Thomas Sav

    (Department of Economics, Raj Soin College of Business, Wright State Universtiy, Dayton, Ohio 45435 USA)

Abstract

Stochastic frontier cost and inefficiency estimates are provided for research and doctoral granting universities in the years, 2005-2009, is used to estimate underlying cost structures. Inefficiency is modeled as depending on institutionally specific environmental factors. Results indicate that public universities are on average more efficient than their private counterparts. The latter exhibit greater variability and when evaluated at the median inefficiencies there does not appear to be any statistically significant difference. Time varying inefficiency estimates point to public sector efficiency gains but private sector increasing inefficiencies. Interestingly, results indicate that increases in faculty tenure lead to efficiency improvements. Inefficiency rankings place private ivies among the most inefficient universities whereas public flagships are distributed throughout their sector rankings.

Suggested Citation

  • G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 1-13, June.
    • Handle: RePEc:spp:jkmeit:1280
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    References listed on IDEAS

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    Cited by:

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    2. Daraio, Cinzia & Simar, Léopold & Wilson, Paul W., 2021. "Quality as a latent heterogeneity factor in the efficiency of universities," Economic Modelling, Elsevier, vol. 99(C).
    3. Klaus Wohlrabe & Félix de Moya Anegon & Lutz Bornmann, 2019. "How Efficiently Do Elite US Universities Produce Highly Cited Papers?," Publications, MDPI, vol. 7(1), pages 1-15, January.
    4. Omphile Temoso & Lindikaya W. Myeki, 2023. "Estimating South African Higher Education Productivity and Its Determinants Using Färe-Primont Index: Are Historically Disadvantaged Universities Catching Up?," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(2), pages 206-227, March.
    5. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    6. Mehdi Rhaiem & Nabil Amara, 2020. "Determinants of research efficiency in Canadian business schools: evidence from scholar-level data," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(1), pages 53-99, October.
    7. Klaus Wohlrabe & Felix de Moya Anegon & Lutz Bornmann, 2018. "How efficiently produce elite US universities highly cited papers? A case study based on input and output data," ifo Working Paper Series 264, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    8. Shukhrat Kholmuminov & Robert E Wright, 2017. "Cost efficiency analysis of public higher education institutions in Uzbekistan," Working Papers 1704, University of Strathclyde Business School, Department of Economics.

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