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Contribution Details

Type Conference or Workshop Paper
Scope Discipline-based scholarship
Published in Proceedings Yes
Title The differential effect of competitive university funding on production frontier and efficiency
Organization Unit
Authors
  • Thomas Bolli
  • Maria Olivares
Presentation Type paper
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Event Title First Lisbon Research Workshop on Economics and Econometrics of Education
Event Type conference
Event Location Lissabon, Portugal
Event Start Date January 7 - 2011
Event End Date January 8 - 2011
Abstract Text This paper uses a panel data set containing universities across eight European countries to model an output distance function and analyze the impact of three competitive funding types on the production frontier and the university effciency. We find little evidence for an effect of the budget share financed by tuition fees or private funds on the production frontier, but a significantly negative impact of international public funds. Similarly, only international public funds have an effect on effiency. These findings are consistent with the hypothesis, that competitive funding reduces the frontier due to monitoring costs, but increases competition and therefore decreases ineffciency. Our findings remain robust to the inclusion of country-specific dummies and time trends, the use of lagged values and country averages as instruments and the variation of the identification strategy for university effciency.
Official URL http://cemapre.iseg.utl.pt/events/1e3/papers/Maria%20Olivares.pdf
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Additional Information Titel des Papers: Effects of Competitive Funding on University Effciency