University Efficiency and Public Funding for Higher Education in Bulgaria

Posted: 7 Jul 2013

See all articles by Kiril Tochkov

Kiril Tochkov

Texas Christian University - Department of Economics

Nikolay Nenovsky

Bulgarian National Bank

Karin Tochkov

Texas A&M University - Department of Psychology

Date Written: 2012

Abstract

The recent pressure on public finances in Bulgaria has exposed the need for a performance-based system of public funding for higher education. This article estimates the relative technical and cost efficiency of Bulgarian universities and explores the correlation between public funding and efficiency levels. In particular, a recent government proposal to use university rankings for the allocation of funds is evaluated with regard to efficiency. The results indicate that public universities are less efficient than private institutions, especially in teaching-related aspects. A larger share of the education market, fewer fields of study and more science-related majors result in efficiency gains. Efficiency is not a significant determinant of the amounts of subsidy allocated to a university, while the rankings of efficiency and funding are found to be negatively correlated. However, the rankings to be used under the proposed policy are positively related to cost efficiency, suggesting that the reform effort is a step in the right direction.

Keywords: Efficiency, higher education, public funding, university ranking, Bulgaria

JEL Classification: I22, I23, H52

Suggested Citation

Tochkov, Kiril and Nenovsky, Nikolay and Tochkov, Karin, University Efficiency and Public Funding for Higher Education in Bulgaria (2012). Post-Communist Economies, Vol. 24, No. 4, pp. 517-534, 2012, Available at SSRN: https://ssrn.com/abstract=2290403

Kiril Tochkov (Contact Author)

Texas Christian University - Department of Economics ( email )

Box 298510
Fort Worth, TX 76129
United States
817-257-7554 (Phone)
817-257-5058 (Fax)

HOME PAGE: http://personal.tcu.edu/ktochkov

Nikolay Nenovsky

Bulgarian National Bank ( email )

str "St. Sofia" 5
Sofia, 1040
Bulgaria
+ 359 2 9145 1239 (Phone)
+ 359 2 980 24 25 (Fax)

Karin Tochkov

Texas A&M University - Department of Psychology ( email )

College Station, TX 77843-4235
United States

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