Jean Monnet Programme European Module Jean Monnet Studies

Jean Monnet Programme - European Module Jean Monnet Studies on Economic Integration: within and beyond Europe Decision Nr 2011 -3263/001 -001 Methodology of European Studies This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. With the support of the LPP programme of the European Union 1

EFFICIENCY OF EUROPEAN PUBLIC HIGHER EDUCATION INSTITUTIONS: A TWO-STAGE MULTICOUNTRY MULTIPERIOD APPROACH Wolszczak-Derlacz J. and Parteka A. With the support of the LPP programme of the European Union 2

§ MOTIVATION § LITERATURE REVIEW § METHODOLOGY University production function Data Envelopment Analysis (DEA) Two-stage bootstrap DEA analysis Data and panel composition § ESTIMATION Key characteristics of HEIs Step 1: Non-parametric efficiency measure Step 2: parametric approach: estimated model Robustness check § CONCLUSION With the support of the LPP programme of the European Union 3

MOTIVATION § Academic research - a key factor of human capital creation § Lisbon Strategy/Europe 2020 §The debate about universities in Europe: their role (teaching versus research), funding, governance and efficiency “In the global knowledge economy, people’s skills, learning, talents, and attributes - their human capital - have become key to both their ability to earn a living and to wider economic growth. Education system can do much to help people to realize their potential, but when they fail it can lead to lifelong social and economic problems”(OECD, 2007 p. 21) “. . . Europe simply must have a first-class university system - with universities recognized internationally as the best in the various field involved” (European Commission, 2003 p. 22) With the support of the LPP programme of the European Union 4

LITERATURE REVIEW § DEA still not popular in HEIs (bibliographic database of DEA articles published in scientific journals in the years 1950 – 2007, maintained by Gattoufi et al. (2010), records only about 3. 5% of papers dedicated to the HE); § HEIs: mainly country-specific studies (Australia: Abbott and Doucouliagos, 2003; Worthington and Lee, 2008; UK: Flegg et al. , 2004; Johnes 2006; Italy: Abramo et al. , 2008; Agasisti and Salerno, 2007; Bonaccorsi et al. , 2006; Tommaso and Bianco, 2006; Austria: Leitner et al. , 2007; Germany: Fandel, 2007; Kempkes and Pohl, 2006); § Cross-country studie: Bonaccorsi et. al. , 2007; Agasisti and Johnes, 2009. § Second step: mainly tobit model used: Kirjavainen and Loikkanen, 1998; Kempkes and Pohl, 2008. Bootstrapping procedure: Oliviera and Santos, 2005; Alexander et al. , 2010 With the support of the LPP programme of the European Union 5

University production function With the support of the LPP programme of the European Union 6

Research output How to measure research output: § expert peer-review process § evaluation of research orientation e. g Ph. D to total number of students § comparision of research grants § bibliometric indicators With the support of the LPP programme of the European Union 7

Bibliometric indicators Advantages: § comparable across universities § easy to implement § low cost § quick update Disadvantages § quality versus quantity § differences across disciplines § self citation With the support of the LPP programme of the European Union 8

Data envelopment analysis (DEA) § no functional form § multiply inputs and multiply outputs § relative efficiency of each HEI (vis-a-vis the best performence) § output orientated model: maximising output while using no more than observed amount of inputs § 3 inputs: academic staff, students, total revenues in euro; 2 outputs: graduates and scientific publications listed in ISI Web of Knowledge With the support of the LPP programme of the European Union 9

TWO-STAGE BOOTSTRAP DEA ANALYSIS With the support of the LPP programme of the European Union 10

BOOTSRAPPED TRUNCATED REGRESSION With the support of the LPP programme of the European Union 11

DATA AND PANEL COMPOSITION Micro database on 259 European public HEIs, 2001 -2005 With the support of the LPP programme of the European Union 12

Key characteristics of HEIs With the support of the LPP programme of the European Union 13

STEP 1: NON-PARAMETRIC - RESULTS OF THE EMPIRICAL ANALYSIS OF EFFICIENCY PERFORMENCE With the support of the LPP programme of the European Union 14

THE DISTRIBUTION OF EFFICIENCY SCORES BY COUNTRY (ALL YEAR POOLED) With the support of the LPP programme of the European Union 15

STEP 2: PARAMETRIC APPROACH: ESTIMATED MODEL With the support of the LPP programme of the European Union 16

RESULTS TABLE: The determinants of inefficiency scores (truncated regression) - DEA 3 input 2 output model With the support of the LPP programme of the European Union 17

ROBUSTNESS CHECK § 2 input 2 output DEA model § Double bootstrap procedure § Alternative truncation points § Articles only as a research output § Change in the number of bootstrap replications: L=500, L=2000 With the support of the LPP programme of the European Union 18

DEA 2 INPUT 2 OUTPUT MODEL With the support of the LPP programme of the European Union 19

DOUBLE BOOTSTRAP PROCEDURE With the support of the LPP programme of the European Union 20

ALTERNATIVE TRUNCATION POINTS With the support of the LPP programme of the European Union 21

Conclusion § Creation of an unique micro database - need to expand country coverage § High variability of efficiency within and between countries: difficult to point out the best country § Inefficiency is determined by: - size (number of students and number of different faculties) - specialisation (number and composition of faculties) - tradition (year of foundation) - gender structure of the academic staff - the share of revenues from core funding (public sources) § Clear political implications, especially for those who manage individual HEIs With the support of the LPP programme of the European Union 22

Thank you for your attention jwo@zie. pg. gda. pl With the support of the LPP programme of the European Union 23