Complutense University Library

Measuring the technical efficiency trough maximun likelihood models: a comparison between alternative specifications applied to a university


Moreno Sáez, Alfredo and Montes Botella, José Luis and Trillo del Pozo, David (2000) Measuring the technical efficiency trough maximun likelihood models: a comparison between alternative specifications applied to a university. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 28, 2000, ISSN: 2255-5471 ]

Creative Commons Attribution Non-commercial Share Alike.


Official URL:


This paper presents an application of efficiency measurement stochastic techniques to a University Department scientific production. In the first part, we follow Lovell´s (1982) model to carry out a static analysis with the variable averages in the selected period. The model sensibility to the chosen adjusted production function is analysed considering the CES, Cobb-Douglas and Translog functions. Afterwards, the efficiency estimation for each one of the Departments in consideration is carried out by means of the efficiency term conditional expectancy on the global error. The second part studies the dynamic estimate, following Batesse and Coelli (1992, 1995), through different functional forms. In this case, different assumptions of efficiency evolution, for fixed and variable effects, are considered and estimated again for each production unit (Department) and period. To be able to consider non-lineal models and split residuals, maximum likelihood estimate is applied. Lastly, the efficiency indexes homogeneity is studied in both dynamic and static models.

Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Stochastic frontier; Maximum likelihood; Efficiency; Panel data; Higher education.
Subjects:Sciences > Mathematics > Stochastic processes
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
ID Code:6709

Aigner, D.; Lovell, C. K. y Schmidt, P. J. (1977): Formulation and estimation of stochastic frontier production models. Journal of Econometrics nº 6, pp. 21-37.

Athanassopoulos y Shale (1997) Assessing the comparative efficiency of Higher Education Institutions in the UK by means of DEA. Education Economics, vol 5, nº 2, pp. 117-134.

Batesse, G. E. y Coelli, T. J. (1992): Frontier Production Functions, technical efficiency and panel data: with application to paddy farmers in India. Journal of Productivity Analysis, nº 3, pp. 153-169.

Batesse, G. E. y Corra, G. S. (1977): Estimation of a production frontier model: with application to the pastoral zone of eastern Australia. Australian Journal of Agricultural Economics, vol. 21, nº 3, pp. 169-179.

Battese, G. E. y Coelli, T. J. (1995): A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics nº 20, pp. 325-332.

Baumol, W., Panzar, J. C. y Willig, R. D. (1982): Contestable Markets and the Theory of Industry Structure. Harcourt Brace Jovanovich, New York.

Beasley, J. E. (1995): Determining teaching and research efficiencies. Journal of the Operational Research Society nº 46, pp. 441-452.

Cohn, E.; Rhine, S.L.W. y Santos, M.C. (1989): Institutions of higher education as multi-product firms: econmies of scale and scope. Review of Economics and Statistics nº 71, pp. 284-290.

De Groot, H. McMahon, W.W. y Volkwein (1991): The cost structure of American research universities. Review of Economics and Statistics nº 73 (3) August, pp. 424-431.

Dundar, H. y Lewis, D. R. (1995): Departmental productivity in American universities Economies of scale and scope. Economics of Education Review vol. 14 nº 2, pp. 119-144.

Farrell, M.J. (1957): The measurement of productive efficiency. Journal of the Royal Statistical Society vol. 120, series A part III, pp. 253-281.

Glass, J. C., McKillip, D. G. y Hyndman, N. (1995): Efficiency in the provision of University teaching and research: an empirical analysis of UK universities. Journal of Applied Econometrics, nº 10, pp. 1-72.

Greene, W. H. (1993): The econometric approach to efficiency analysis en Fried, H. O.; Lovell, C. A. K.; Schmith, S. S. (Eds). pp 69-119.

Johnes, G. (1995): Multi-product cost functions and the funding of tuition in UK universities. Working The Management School, Lancaster University.

Johnes, G. (1997): Cost in UK Higher Education: a system-wide perpective. Working Paper del CERT (Centre for Economic Reform and Transformation).

Johnes, G. y Johnes, J. (1993): Measuring the research performance of UK Economics Departments: an application of Data Envelopment Analysis. Oxford Economic Papers nº 45 (2) April, pp. 332-347.

Jondrow, J.; Lovell, C. A. K.; Materov, S. y Schmidt, P. (1977): On the estimation of technical inefficiency in the stochastic frontier production function model. Journal of Econometrics 19, pp. 233-238.

Kumbhakar, S. C. (1990): Production frontiers, panel data, and time-varying technical inefficiency. Journal of Econometrics, 46, pp. 201-211.

Meeusen, W. y Van Den Broeck, J. (1977): Efficiency estimation from Cobb-Douglas productions functions with composed error. International Economic Review, vol. 18, nº 2 june, pp. 435-444.

Sarrico et al. (2000): Using DEA for planning in UK universities: an institutional perspective. The Journal of the Operational Research Society 51 (7), pp. 789-800.

Simar (1992): Estimating efficiencies from frontier models with panel data: A comparison of parametric, non-parametric and semi-parametric methods with bootstrapping. Journal of Productivity Analysis nº 3, pp. 167-203.

Sinuany-Stern, Z.; Mehrez, A. y Barboy, A. (1994): Academic Departments efficiency via DEA. Computers & Operations Research, Vol. 21 nº 5, pp. 543-556.

Universitat Politècnica de Catalunya (1994-2000): Dades estadísitiques i de gestió. Oficina Tècnica de Programació.

Deposited On:30 Nov 2007
Last Modified:28 Sep 2015 09:18

Repository Staff Only: item control page