Assessing the Comparative Efficiency of Higher Education Institutions in the UK by the Means of Data Envelopment Analysis

Abstract

In this paper, we examine the comparative of higher education institutions in the UK. The governmental inititatives of the decade within this sector have given emphasis to issues of accountability, value for money and cost control. The reporting of various statistics regarding the universities' activities only fully achieves its potential value if it is used to define comprehensive concepts of performance and goal achievements informed by the institutions' missions. In that spirit, we propose concepts of cost and outcome efficiency in order to gain further insights into the universities' operations. Data envelopment analysis and its recent advances were used to asses the two types of efficiency. The application of the methodology to 45 universities in the UK revealed a subset of six institutions that showed satisfactory performance across alternative efficiency tests.