De-Efficiency of Italian Universities: A Comparative Analysis of Public, Private, and Online Institutions

Tommaso Agasisti () and Gaetano Francesco Coppeta ()
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Tommaso Agasisti: School of Management, Politecnico di Milano, Milan, Italy
Gaetano Francesco Coppeta: Department of Management, Economics & Industrial Engineering, Politecnico di Milano, Italy

Working papers from Società Italiana di Economia Pubblica

Abstract: This paper investigates the efficiency of Italian universities, comparing public, private, and online (telematic) institutions over the period 2015-2022. This paper is the first study on the efficiency of online universities in Italy. Using a Generalized True Random Effect (GTRE) stochastic frontier model, we disentangle persistent and transient inefficiencies while accounting for unobserved heterogeneity. Results reveal significant differences across university types, especially when research output is included in the production function. Online universities, despite their rapid growth, exhibit lower efficiency scores due to limited research activity. Our findings suggest that institutional missions and structural configurations shape performance, and that efficiency assessments should reflect the multiple universities’ goals of teaching, research and third mission.

Keywords: Efficiency; Higher Education Institutions; Online universities Stochastic frontier; Italy (search for similar items in EconPapers)
JEL-codes: I23 (search for similar items in EconPapers)
Date: 2025-12
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