Operations Management and Quantitative Techniques Area, Indian Institute of Management Bodh Gaya, Bodh Gaya, Bihar, India.
Decision Sciences Area, Indian Institute of Management Lucknow, Lucknow, Uttar Pardesh, India.
This paper focuses on the Data Envelopment Analysis (DEA) based efficiency evaluation to find the impact of two-step categorical impact on the enrollment efficiency of colleges in Bihar, one of the largest states of India. The objective of the study is to find the impact of factors, other than college-specific, on the efficiency of the colleges. The proposed research includes colleges funded and managed through seven state public universities. To follow the homogeneity condition of DEA, colleges providing courses of Arts (languages and humanities only), Science, and Commerce only, have been selected. The numbers of students enrolled in undergraduate and postgraduate courses are considered as two outputs. Numbers of teaching and non-teaching staff are considered as inputs. Colleges have been classified into two categories based on their presence in the rural or urban areas. The efficiency of a college due to any categorical value is calculated as the ratio of overall efficiency and efficiency calculated with similar categorical Decision-Making Units (DMUs) only. The impact of both the categorical variables, affiliation to university and geographical presence, has been analyzed through the hypothesis testing with the null hypothesis that there is no impact of category on the efficiency of DMUs due to a categorical variable.
Keywords- DEA, Efficiency, Categorical variables, Higher education.
Ranjan, P., & Singh, S. (2021). Efficiency Analysis of Higher Education Institutions: Use of Categorical Variables. International Journal of Mathematical, Engineering and Management Sciences, 6(6), 1518-1532. https://doi.org/10.33889/IJMEMS.2021.6.6.090.
Conflict of Interest
The author confirms that there is no conflict of interest to declare for this publication.
This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. The authors would like to thank the editor and anonymous reviewers for their comments that help improve the quality of this work.
Abbott, M., & Doucouliagos, C. (2003). The efficiency of Australian universities: A data envelopment analysis. Economics of Education Review, 22(1), 89-97.
Agasisti, T., & Johnes, G. (2009). Beyond frontiers: comparing the efficiency of higher education decision‐making units across more than one country. Education Economics, 17(1), 59-79.
Agasisti, T., & Ricca, L. (2016). Comparing the efficiency of Italian public and private universities (2007-2011): An empirical analysis. Italian Economic Journal, 2(1), 57-89.
Andersen, P., & Petersen, N.C. (1993). A procedure for ranking efficient units in data envelopment analysis. Management Science, 39(10), 1261-1264.
Athanassopoulos, A.D., & Shale, E. (1997). Assessing the comparative efficiency of higher education institutions in the uk by the means of data envelopment analysis. Education Economics, 5(2), 117-134.
Atici, K.B., & Podinovski, V.V. (2015). Using data envelopment analysis for the assessment of technical efficiency of units with different specializations: An application to agriculture. Omega, 54, 72-83.
Avkiran, N.K. (2001). Investigating technical and scale efficiencies of Australian universities through data envelopment analysis. Socio-Economic Planning Sciences, 35(1), 57-80.
Banker, R.D. (1984). Estimating the most productive scale size using data envelopment analysis. European Journal of Operational Research, 17(1), 35-44.
Banker, R.D., Charnes, A., & Cooper, W.W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30(9), 1078-1092.
Banker, R.D., Cooper, W.W., Seiford, L.M., Thrall, R.M., & Zhu, J. (2004). Returns to scale in different DEA models. European Journal of Operational Research, 154(2), 345-362.
Banker, R.D., & Morey, R.C. (1986). The use of categorical variables in data envelopment analysis. Management Science, 32(12), 1613-1627.
Beasley, J.E. (1990). Comparing university departments. Omega, 18(2), 171-183.
Beasley, J.E. (1995). Determining teaching and research efficiencies. Journal of the Operational Research Society, 46(4), 441-452.
Charnes, A., Cooper, W.W., Golany, B., Seiford, L., & Stutz, J. (1985). Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions. Journal of Econometrics, 30(1-2), 91-107.
Charnes, A., Cooper, W.W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429-444.
Cook, W.D., Chai, D., Doyle, J.R., & Green, R.H. (1998). Hierarchies and Groups in DEA. Journal of Productivity Analysis, 10(2), 177-198.
Cooper, W.W., Seiford, L.M., & Tone, K. (2007). Non-Discretionary and categorical variables. In Cooper, W.W., Seiford, L.M., Tone, K. (eds) Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software. Springer, Boston, MA, 2nd ed., pp. 215-255.
Du, J., Zhu, J., Cook, W.D., & Huo, J. (2015). DEA models for parallel systems: Game-Theoretic approaches. Asia-Pacific Journal of Operational Research, 32(2), 1550008.
Farrell, M.J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society. Series A (General), 120(3), 253-293.
Førsund, F.R. (2002). Categorical variables in DEA. International Journal of Business and Economics, 1(1), 33-43.
Gholizadeh, H., & Fazlollahtabar, H. (2019). Production control process using integrated robust data envelopment analysis and fuzzy neural network. International Journal of Mathematical, Engineering and Management Sciences, 4(3), 580-590.
Giménez, V.M., & Martínez, J.L. (2006). Cost efficiency in the university: A departmental evaluation model. Economics of Education Review, 25(5), 543-553.
Jauhar, S.K., Pant, M., & Dutt, R. (2018). Performance measurement of an Indian higher education institute: A sustainable educational supply chain management perspective. International Journal of System Assurance Engineering and Management, 9(1), 180-193.
Johnes, J. (2006a). Data envelopment analysis and its application to the measurement of efficiency in higher education. Economics of Education Review, 25(3), 273-288.
Johnes, J. (2006b). Measuring teaching efficiency in higher education: An application of data envelopment analysis to economics graduates from UK universities 1993. European Journal of Operational Research, 174(1), 443-456.
Johnes, J., & Yu, Li. (2008). Measuring the research performance of Chinese higher education institutions using data envelopment analysis. China Economic Review, 19(4), 679-696.
Kao, C. (1998). Measuring the efficiency of forest districts with multiple working circles. Journal of the Operational Research Society, 49(6), 583-590.
Kao, C. (2000). Short-run and long-run efficiency measures for multiplant firms. Annals of Operations Research, 97(1-4), 379-388.
Kao, C. (2009). Efficiency measurement for parallel production systems. European Journal of Operational Research, 196(3), 1107-1112.
Kao, C., & Hung, H.T. (2008). Efficiency analysis of university departments: An empirical study. Omega, 36(4), 653-664.
Kocher, M.G., Luptacik, M., & Sutter, M. (2006). Measuring productivity of research in economics: A cross-country study using DEA. Socio-Economic Planning Sciences, 40(4), 314-332.
Li, Y., Lei, X., Dai, Q., & Liang, L. (2015). Performance evaluation of participating nations at the 2012 London summer olympics by a two-stage data envelopment analysis. European Journal of Operational Research, 243(3), 964-973.
McMillan, M.L., & Datta, D. (1998). The relative efficiencies of canadian universities: a DEA perspective. Canadian Public Policy / Analyse de Politiques, 24(4), 485-511.
MHRD (2013). Rashtriya Uchchatar Shiksha Abhiyan: National Higher Education Mission. rusa.nic.in
MHRD (2015). All India Survey on Higher Education 2012-13. Department of Higher Education, Ministry of Human Resource Development, Government of India.
Pastor, J.T., Ruiz, J.L., & Sirvent, I. (1999). A statistical test for detecting influential observations in DEA. European Journal of Operational Research, 115(3), 542-554.
Planning Commission. (2013). Twelfth five year plan (2012-2017) social sectors: Vol. III (pp. 47-123). Sage Publications India Pvt Ltd.
Ray, S.C., & Jeon, Y. (2008). Reputation and efficiency: A non-parametric assessment of America’s top-rated MBA programs. European Journal of Operational Research, 189(1), 245-268.
Ruiz, J.L., Segura, J.V., & Sirvent, I. (2015). Benchmarking and target setting with expert preferences: An application to the evaluation of educational performance of Spanish universities. European Journal of Operational Research, 242(2), 594-605.
Sagarra, M., Mar-Molinero, C., & Agasisti, T. (2017). Exploring the efficiency of Mexican universities: Integrating data envelopment analysis and multidimensional scaling. Omega, 67, 123-133.
Sahoo, B.K., Singh, R., Mishra, B., & Sankaran, K. (2017). Research productivity in management schools of India during 1968-2015: A directional benefit-of-doubt model analysis. Omega, 66, 118-139.
Saxena, P. (2019). A benchmarking strategy for Delhi transport corporation: An application of data envelopment analysis. International Journal of Mathematical, Engineering and Management Sciences, 4(1), 232-144.
Sexton, T.R., Silkman, R.H., & Hogan, A.J. (1986). Data envelopment analysis: Critique and extensions. New Directions for Program Evaluation, 1986(32), 73-105.
Singh, S. (2011). Measuring the performance of teams in the Indian premier league. American Journal of Operations Research, 1(3), 180-184.
Singh, S., & Ranjan, P. (2018). Efficiency analysis of non-homogeneous parallel sub-unit systems for the performance measurement of higher education. Annals of Operations Research, 269(1-2), 641-666.
Sinuany-Stern, Z., Mehrez, A., & Barboy, A. (1994). Academic departments efficiency via DEA. Computers & Operations Research, 21(5), 543-556.
Thanassoulis, E., Dey, P.K., Petridis, K., Goniadis, I., & Georgiou, A.C. (2017). Evaluating higher education teaching performance using combined analytic hierarchy process and data envelopment analysis. Journal of the Operational Research Society, 68(4), 431-445.
Thanassoulis, E., Kortelainen, M., Johnes, G., & Johnes, J. (2011). Costs and efficiency of higher education institutions in England: A DEA analysis. Journal of the Operational Research Society, 62(7), 1282-1297.
Tone, K. (2001). A slacks-based measure of efficiency in data envelopment analysis. European Journal of Operational Research, 130(3), 498-509.
Tyagi, P., Yadav, S.P., & Singh, S.P. (2009). Relative performance of academic departments using DEA with sensitivity analysis. Evaluation and Program Planning, 32(2), 168-177.