Measuring Technical Efficiency in A Sample Public Universities in Ethiopia: A Data Envelopment Analysis

Abstract

This paper uses data envelopment analysis to examine the technical efficiency (TE) of 20 departments in the period 2014/2015–2015/2016. To shed light on the causes of variations in efficiency, TE is decomposed into pure technical efficiency and scale efficiency. The input variable is total number of staff (academic and nonacademic), whereas the output variable is total number of students (under graduate and post graduate). The study adopts non-parametric Data Envelopment Analysis (DEA) input-orientation (i.e. both CCR & BCC models) to measure the relative technical efficiency of departments and Malmquist productivity index (MPI) output-orientation to measure the productivity gains of departments over time. Under CCR model a 5 percent of the sample department was relatively efficient where as a 95 percent were inefficient. In addition, in 2014/15, the number of technical efficient departments was four (4), about 20 percent of the sample when VRS TE is assumed and one (1), about 5 percent when CRS TE is assumed. The Malmquist index measures are also decomposed into two components: technical efficiency change and technological change. Technical efficiency change is further decomposed into pure technical efficiency change and scale efficiency change. On average the sample departments found with increased technical efficiency score. All departments had shown deterioration of technology in the study period

Keywords Data Envelopment Analysis, Malmquist Productivity Index, Technical Efficiency, Public Universities

DOI: 10.7176/JEP/11-28-03

Publication date:October 31^st 2020