With the support of the LPP programme of the European Union 1 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. Jean Monnet Programme - European Module Jean Monnet Studies on Economic Integration: within and beyond Europe Decision Nr / Methodology of European Studies

With the support of the LPP programme of the European Union 2 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 3  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 Step1: Non-parametric efficiency measure Step 2: parametric approach: estimated model Robustness check  CONCLUSION

With the support of the LPP programme of the European Union 4 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 5 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,  Second step: mainly tobit model used: Kirjavainen and Loikkanen, 1998; Kempkes and Pohl, Bootstrapping procedure: Oliviera and Santos, 2005; Alexander et al., 2010

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

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

With the support of the LPP programme of the European Union 8 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 9 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 10 TWO-STAGE BOOTSTRAP DEA ANALYSIS

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

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

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

With the support of the LPP programme of the European Union 14 STEP1: NON-PARAMETRIC - RESULTS OF THE EMPIRICAL ANALYSIS OF EFFICIENCY PERFORMENCE

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

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

With the support of the LPP programme of the European Union 17 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 18 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 19 DEA 2 INPUT 2 OUTPUT MODEL

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

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

With the support of the LPP programme of the European Union 22 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 23 Thank you for your attention