| By: |
Thomas Bolli (KOF Swiss Economic Institute, ETH Zurich, Switzerland);
Mehdi Farsi (CEPE, ETH Zurich, Switzerland) |
| Abstract: |
This paper analyzes the labor productivity of Swiss university departments
between 1995 and 2007. Using a parametric input distance function we estimate
and decompose the Malmquist productivity indexes in line with Fuentes et al.
(2001) and Atkinson et al. (2003). By contrast to those studies, this paper
proposes a panel data specification to account for unobserved heterogeneity
across production units. The adopted model is a mixed-effects model with
department fixed effects as well as random coefficients for time variables. We
also use an autoregressive stochastic term to model inefficiency shocks while
allowing for gradual improvement of persistent inefficiencies. The results
indicate a negative trend in overall productivity measured by Malmquist index,
particularly after 2002, with an average productivity decline of about one
percent per year. A major part of this productivity decline coincides with the
recent developments in Switzerland’s higher education system following the
adoption of the Bologna agreement. However, the results do not provide any
evidence of statistically significant relationship between productivity and
reforms. Our decomposition analysis suggests that the observed productivity
decline could be contributed to technical regress but also to a rising
inefficiency with a relatively high level of persistence. The results also
point to various patterns across different fields. In particular, economics
and business departments and law schools show the lowest performance, whereas
science departments stand out as an exception with productivity improvement. |
| Keywords: |
Swiss Universities, Parametric Distance Function, Heterogeneity, Malmquist Index, Decomposition, Autocorrelation |
| JEL: |
C23 D24 I23 J24 |
| Date: |
2011–04 |
| URL: |
https://d.repec.org/n?u=RePEc:kof:wpskof:11-278 |