University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non-Stochastic Methods

Education Economics, Forthcoming

Posted: 4 Apr 2006

See all articles by Melville McMillan

Melville McMillan

University of Alberta

Wing H. Chan

Wilfrid Laurier University - School of Business & Economics; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Abstract

Efficiency scores are determined for Canadian universities using both data envelopment analysis and stochastic frontier methods for selected specifications. The outcomes are compared. There is considerable divergence in the efficiency scores and their rankings among methods and specifications. An analysis of rankings, however, reveals that the relative positions of individual universities across sets of several efficiency rankings (e.g., all the data envelopment analysis and stochastic frontier outcomes) demonstrate an underlying consistency. High-efficiency and low-efficiency groups are evidenced but the rank for most universities is not significantly different from that of many others. The results emphasize the need for caution when employing efficiency scores for management and policy purposes, and they recommend looking for confirmation across viable alternatives.

Keywords: Universities, efficiency, DEA, stochastic frontier

Suggested Citation

McMillan, Melville and Chan, Wing H., University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non-Stochastic Methods. Education Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=894564

Melville McMillan (Contact Author)

University of Alberta ( email )

Edmonton, Alberta
Canada

Wing H. Chan

Wilfrid Laurier University - School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
Canada
519-884-0710, ext. 2773 (Phone)
519-888-1015 (Fax)

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

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