Estimating Value Creation in the Public University: A Comparison of Deterministic and Stochastic Frontiers

30 Pages Posted: 9 Nov 2016

See all articles by Teodoro Reyes-Fong

Teodoro Reyes-Fong

Universidad de Colima

Francisco M. Somohano

University of Cantabria - Faculty of Business & Economics

Date Written: December 3, 2008

Abstract

Public value creation philosophy is based on the idea that public administration should guide its performance accordingly with the changing times and reconcile effectively its objectives with the appropriate use of its resources. However, in public administration, particularly in organizations characterized by heterogeneity of the mandated functions, this sort of analysis is difficult. In this work, we estimate changes in the value creation of a Spanish public university, specifically the University of Cantabria, over the period 2005-2007. We analyze 31 of its departments with deterministic and stochastic frontiers using panel data. The results reveal information related to productivity and efficiency change through time, as well as their possible causes for each of the evaluated Decision Making Units (DMUs).

Keywords: Value Creation; Teaching and Research; Panel Data; Distance Functions; Data Envelopment Analysis; Stochastic Frontier Analysis; Malmquist Index

JEL Classification: C61; H41

Suggested Citation

Reyes-Fong, Teodoro and Somohano, Francisco M., Estimating Value Creation in the Public University: A Comparison of Deterministic and Stochastic Frontiers (December 3, 2008). Available at SSRN: https://ssrn.com/abstract=2866010 or http://dx.doi.org/10.2139/ssrn.2866010

Teodoro Reyes-Fong (Contact Author)

Universidad de Colima ( email )

Facultad de Economía
Av. Josefa Ortiz de Dominguez 64
Villa de Alvarez, Colima 28970
Mexico

Francisco M. Somohano

University of Cantabria - Faculty of Business & Economics ( email )

Santander 39005
Spain

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