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Market forces and competition in university systems: theoretical reflections and empirical evidence from Italy

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  • Tommaso Agasisti

Abstract

This paper deals with the reforming processes in higher education (HE) from centralised systems towards more competitive ones. In particular, I discuss these issues referring to the Italian case, and the market-like mechanisms introduced in it during 1990s and early 2000s. The focus of the paper is in analysing the effects of the increasing competition on teaching performance of universities. For this purpose, I develop a theoretical model, moving from the framework of yardstick competition (YC), to describe the functioning of a competition model based on comparing performance of institutions. Then, I apply this model using data from the Italian university system. The results suggest that an increasingly competitive environment effectively improves the universities' performance, which is also influenced by other factors, namely the characteristics of the institutions themselves and of their students, and by the resources available. As the exploratory nature of the study, these findings must be validated through future research.

Suggested Citation

  • Tommaso Agasisti, 2009. "Market forces and competition in university systems: theoretical reflections and empirical evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(4), pages 463-483.
    • Handle: RePEc:taf:irapec:v:23:y:2009:i:4:p:463-483
    DOI: 10.1080/02692170902954783
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    References listed on IDEAS

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    5. Raquel Fernandez & Richard Rogerson, 2003. "Equity and Resources: An Analysis of Education Finance Systems," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 858-897, August.
    6. Caroline M. Hoxby, 1999. "The Productivity of Schools and Other Local Public Goods Providers," NBER Working Papers 6911, National Bureau of Economic Research, Inc.
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    9. Geraint Johnes & Jill Johnes (ed.), 2004. "International Handbook on the Economics of Education," Books, Edward Elgar Publishing, number 2847.
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    Cited by:

    1. Barra, Cristian & Lagravinese, Raffaele & Zotti, Roberto, 2015. "Explaining (in)efficiency in higher education: a comparison of parametric and non-parametric analyses to rank universities," MPRA Paper 67119, University Library of Munich, Germany.
    2. Erik E. Lehmann & Michele Meoli & Stefano Paleari & Sarah A. E. Stockinger, 2018. "Approaching effects of the economic crisis on university efficiency: a comparative study of Germany and Italy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 37-54, March.
    3. Agasisti, Tommaso & Barra, Cristian & Zotti, Roberto, 2016. "Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity," Socio-Economic Planning Sciences, Elsevier, vol. 55(C), pages 47-58.
    4. Valentina Tocchioni & Alessandra Petrucci, 2020. "Italian PhD students at the borders: The relationship between family background and international mobility," Econometrics Working Papers Archive 2020_10, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    5. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
    6. Tommaso Agasisti & Cristian Barra & Roberto Zotti, 2019. "Research, knowledge transfer, and innovation: The effect of Italian universities’ efficiency on local economic development 2006−2012," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 819-849, November.
    7. Contini, Dalit & Salza, Guido, 2020. "Too few university graduates. Inclusiveness and effectiveness of the Italian higher education system," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    8. Tommaso Agasisti & Aleksei Egorov & Daria Zinchenko & Oleg Leshukov, 2018. "Universities’ Efficiency And Regional Economic Short-Run Growth: Empirical Evidence From Russia," HSE Working papers WP BRP 203/EC/2018, National Research University Higher School of Economics.
    9. Tommaso Agasisti & Giuseppe Munda, 2017. "Efficiency of investment in compulsory education: An Overview of Methodological Approaches," JRC Research Reports JRC106681, Joint Research Centre.
    10. Stefania Veltri & Pina Puntillo, 2020. "On intellectual capital management as an evaluation criterion for university managers: a case study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(1), pages 135-167, March.
    11. Horváth, Krisztina & Berbegal-Mirabent, Jasmina, 2022. "The role of universities on the consolidation of knowledge-based sectors: A spatial econometric analysis of KIBS formation rates in Spanish regions," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    12. Klumpp, Matthias & Krol, Bianca, 2011. "Berufswertigkeit in der Logistik," ild Schriftenreihe 15, FOM Hochschule für Oekonomie & Management, Institut für Logistik- & Dienstleistungsmanagement (ild).
    13. Barra, Cristian & Lagravinese, Raffaele & Zotti, Roberto, 2018. "Does econometric methodology matter to rank universities? An analysis of Italian higher education system," Socio-Economic Planning Sciences, Elsevier, vol. 62(C), pages 104-120.
    14. Mattia Cattaneo & Paolo Malighetti & Michele Meoli & Stefano Paleari, 2017. "University spatial competition for students: the Italian case," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 750-764, May.
    15. Daniil G. Sandler, 2022. "Manifestations of Competition and Quasi-Competition of Russian Universities in the Struggle to Attract Applicants," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(1), pages 130-151.
    16. Bergantino, Angela Stefania & Capozza, Claudia & Porcelli, Francesco, 2015. "Hotelling competition and teaching efficiency of Italian university faculties. A semi-parametric analysis," MPRA Paper 62927, University Library of Munich, Germany.
    17. Tommaso Agasisti & Ralph Hippe & Giuseppe Munda, 2017. "Efficiency of investment in compulsory education: empirical analyses in Europe," JRC Research Reports JRC106678, Joint Research Centre.
    18. Mehmet Cahit GÜRAN & Emine AYRANCI, 2019. "Efficiency Changes in Higher Education in OECD Countries: Implementation of Malmquist Total Factor Productivity Index for 2000 and 2012 PeriodAbstract: This study analyzes the total factor productivit," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    19. Bolli, Thomas & Olivares, Maria & Bonaccorsi, Andrea & Daraio, Cinzia & Aracil, Adela Garcia & Lepori, Benedetto, 2016. "The differential effects of competitive funding on the production frontier and the efficiency of universities," Economics of Education Review, Elsevier, vol. 52(C), pages 91-104.

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