Heterogeneity and the evaluation of efficiency: the case of Italian universities

Tommaso Agasisti () and Geraint Johnes

Applied Economics, 2010, vol. 42, issue 11, 1365-1375

Abstract: A random parameters stochastic frontier model is applied to Italian data in order to evaluate the cost function and efficiency of higher education institutions. The method yields useful information about inter-institutional variation in cost structure and technical efficiency. Returns to scale and scope are evaluated for the typical university, and it is found that these returns are almost ubiquitously decreasing, a finding with clear policy implications.

Date: 2010
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DOI: 10.1080/00036840701721463

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