Market forces and competition in university systems: theoretical reflections and empirical evidence from Italy

This paper deals with the reforming processes in higher education (HE) from centralised systems towards more competitive ones. In particular, I discuss these issues referring to the Italian case, and the market‐like mechanisms introduced in it during 1990s and early 2000s. The focus of the paper is in analysing the effects of the increasing competition on teaching performance of universities. For this purpose, I develop a theoretical model, moving from the framework of yardstick competition (YC), to describe the functioning of a competition model based on comparing performance of institutions. Then, I apply this model using data from the Italian university system. The results suggest that an increasingly competitive environment effectively improves the universities’ performance, which is also influenced by other factors, namely the characteristics of the institutions themselves and of their students, and by the resources available. As the exploratory nature of the study, these findings must be validated through future research.     

Business models in the search for efficiency: the case of public financial intermediaries

This paper presents an optimal business model configuration for public financial intermediaries (PFIs). Using nonparametric techniques on Italian public financial corporations, the most efficient business models combined asset diversification and income specialization. These business models were unaffected by external financial turmoil, due to weak connections between PFIs and the traditional financial circuit; and public–private ownership is more efficient than purely public ownership, regardless of the business model adopted.     

Comparing German and Italian Public Universities: Convergence or Divergence in the Higher Education Landscape?

In this paper, we examine and compare the efficiency of Italian and German public universities and its evolution in the period 2001–2007. This topic is particularly important because of two main reasons: (i) as the universities are funded through public money in both countries, it is necessary to assess whether it has been used efficiently; (ii) the comparison among (similar) European countries can stimulate a benchmarking exercise that can be useful for managerial and policy making purposes. The results show that German universities are more efficient than their Italian counterparts are, using data envelopment analysis. However, the latter are catching up: in the period 2001–2007, their efficiency has improved more rapidly. Copyright © 2011 John Wiley & Sons, Ltd.     

Defining spending reviews: a proposal for a taxonomy,with applications to Italy and the UK

After the 2008 global financial crisis, many governments introduced spending reviews (SRs). The paper provides a valuable definition of the concept of the SR by proposing a taxonomy of the main organizational and methodological aspects involved in the SR process. The paper identifies two different SR models, which feature alternative approaches to cutting back spending. The authors highlight some important considerations when looking to make sustainable and sensible cuts in spending.     

Using regression tree ensembles to model interaction effects: a graphical approach

Multiplicative interaction terms are widely used in economics to identify heterogeneous effects and to tailor policy recommendations. The execution of these models is often flawed due to specification and interpretation errors. This article introduces regression trees and regression tree ensembles to model and visualize interaction effects. Tree-based methods include interactions by construction and in a nonlinear manner. Visualizing nonlinear interaction effects in a way that can be easily read overcomes common interpretation errors. We apply the proposed approach to two different datasets to illustrate its usefulness.     

Evaluating the Stability of School Performance Estimates over Time

When using school performance indicators for the purposes of accountability and school choice, it is very important that measures are stable over time. This issue is very relevant when the system is based on the allocation of students to the same teachers for the whole educational cycle (e.g. at primary school level). Using administrative data provided by the National Evaluation Committee for Education (INVALSI), we explore the stability of performance estimates for Italian primary schools. We first construct school performance metrics using INVALSI standardised tests, by taking advantage of a rich array of individual‐level variables (including prior achievement) that allow us to estimate a school effect in a ‘value added’ perspective. We assess differences in performance across schools and the persistence of these differences across cohorts. We find that controlling for compositional differences is important; therefore, estimates of school performances are unstable across metrics, and correlations across cohorts decline over time.     

The transient and persistent efficiency of Italian and German universities: a stochastic frontier analysis

Despite measures on the European level to increase the compatibility between the higher education sectors, the recent literature exposes variations in their efficiencies. To gain insights into these differences, we split the efficiency term according to the two management levels each university is confronted with. We separate short-term and long-term efficiency while controlling for unobserved institution-specific heterogeneity. We argue that the first term reflects the efficiency of the individual universities working within the country, while the second term echoes the influence of the overall country-specific higher education structure. The cross-country comparison displays whether efficiency differences between countries are related to the individual performance of their universities or their higher education structure. This allows more purposeful policy recommendations and expands the literature regarding the efficiency of universities in a fundamental way. Choosing Italy and Germany as two important illustrative examples, we show that the Italian higher education sector exhibits a higher overall efficiency value. With the individual universities working at the upper bound of efficiency in both countries, the remaining inefficiency and the gap between the countries are caused by persistent, structural inefficiency. Future measures should hence aim at the country-specific structure and not solely at the activities of single universities.     

Measuring the efficiency of European education systems by combining Data Envelopment Analysis and Multiple-Criteria Evaluation

Education is considered an important factor of economic growth, employment and social inclusion. However, the economic crisis has put the need to achieve educational goals in the most efficient way ever more to the fore. The main objective of this paper is to assess the spending efficiency of European compulsory educational systems, creating a ranking of countries based on the efficiency scores of their systems using a number of standard variables from the literature. To this end, we also present a methodological innovation that combines Data Envelopment Analysis (DEA) with discrete Multiple Criteria Evaluation (MCE), two methods that we consider complementary if used for providing a performance analysis. Moreover, both methods identify a set of common variables which are associated with higher levels of efficiency in educational systems (e.g. some characteristics of teachers, the stock of adults’ human capital and lower expenditures per student). The results show that findings using DEA are largely confirmed by MCE.

     

A cross-country panel approach to exploring the determinants of educational equity through PISA data

The main aim of the paper is to analyse the effect of country and school factors on a new measure of educational equity defined as the country proportion of resilient students, i.e. those who, despite their disadvantaged socioeconomic background, are able to obtain good educational results. We construct a cross country panel dataset by merging the five editions of OECD PISA (Programme for International Student Assessment). The panel analysis allows to exploit country and time level variation in the proportion of resilient students controlling for systematic and institutional differences. Our findings suggest that educational funding can help disadvantaged students to obtain the opportunities that they are otherwise lacking. In addition, this effect seems to be heterogeneous, and particularly driven by those countries whose economic development (in terms of per capita GDP) is lower.