Efficiency Assessment of Universities with DEA Method Based on Public Data

Abstract

Assessment of efficiency in spending public funds for higher education is an important task of the Ministry of National Education. This paper illustrates the application of some models of Data Envelopment Analysis (DEA) to evaluate the relative efficiency of public universities from Romania using data collected from the official reports of the universities' Rectors throughout the years 2012-2015. We use the constant returns to scale (CRS) model and the variable returns to scale (VRS) model to determine the output. Afterwards, we calculate the value of scale efficiency. Based on these results, universities can be grouped into several layers of efficiency. We conclude that public authorities would consider the application of DEA method to generate additional performance indicators in assessing higher education institutions for improving accuracy in public funds allocation and distribution.