Efficiency in Human Capital Qualification by Higher Education Federal Institutions in Brazil from 2007 to 2010

By Fabricio Tourrucoo, Igor Bernardi Sonza, Sérgio Marley Modesto Monteiro and Sabino da Silva Porto Jr..

Published by Journal of the World Universities Forum

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Article: Print $US10.00
Published online: April 4, 2014 $US5.00

We evaluated the efficiency of 21 Higher Education Federal Institutions in human capital qualification in Brazil from 2007 to 2010. This original model considers the qualification increment measured by external tests given to first and last year undergraduate students as educational output. It considers teacher qualification, perceptions of pedagogic quality, and infrastructure adequacy as educational resources in the productive process. Data Envelopment Analysis (DEA) is a well-known technique used in evaluating the efficiency of institutions. An institution is regarded as a productive unit that requires input to generate output. Its relative performance in the process is evaluated and ranked among the units under evaluation. This technique differs from other alternatives by allowing several inputs and outputs in a nonparametric fashion without requiring functional specifications. The rankings produced can be examined in static or dynamic ways, and they can be used to suggest improvements in inefficient units. Static analysis indicates a relatively high efficiency level, suggesting an average improvement of 21%. Dynamic analysis decomposes productivity variation in two different effects. The first, measuring frontier variation, indicates little average improvement. The second, measuring the frontier effect, indicates contraction of the efficient frontier of about 5% per year. Although each university can improve its efficiency by acting on indicated variables, it cannot control movements of the visible part of its frontier alone unless it is defined.

Keywords: Efficiency, DEA, Human Capital, Higher Education

The Journal of the World Universities Forum, Volume 6, Issue 4, April 2014, pp.67-86. Article: Print (Spiral Bound). Published online: April 4, 2014 (Article: Electronic (PDF File; 386.801KB)).

Dr. Fabricio Tourrucoo

Professor, Economics Department, Universidade Federal do Rio Grande do Sul, Porto Alegre, Rio Grande do Sul, Brazil

Fabricio Tourrucôo has been a professor of the economics graduate program (PPGE) at the Federal University of Rio Grande do Sul (UFRGS) in Brazil since 2007. He is responsible for teaching graduate and undergraduate courses in Mathematical Economics and applied quantitative and analytical methods. His research interests are in applied quantitative and analytical methods in economics and finance. He is a member of the Editorial Council of Economic Analysis Journal (RAE/UFRGS). He completed a PhD in applied mathematics from the University of Delaware in 2004. He recently participated in the research project “Impact of UFRGS in the Economy of Rio Grande do Sul” (2011-2012) and was responsible for the research area “Efficiency in Higher Education Institutions.”

Dr. Igor Bernardi Sonza

Professor, Economics Department, Universidade Federal de Santa Maria, Santa Maria, Rio Grande do Sul, Brazil

Igor Sonza holds a bachelor's degree in business administration from the Universidade Federal de Santa Maria (2005), a bachelor's degree in economics from the Universidade Federal de Santa Maria (2006), a master’s degree in business administration from the Universidade Federal de Santa Maria (2007) and a PhD in finance from the Universidade Federal do Rio Grande de Sul (2012). Sonza has experience in administration with an emphasis on finance and economics, mainly in finance, economics, and quantitative methods applied to finance and efficiency.

Dr. Sérgio Marley Modesto Monteiro

Professor, Economics Department, Universidade Federal do Rio Grande do Sul, Porto Alegre, Rio Grande do Sul, Brazil

Sergio Monteiro is an associate professor of economics in the department of economics at the Federal University of Rio Grande do Sul (UFRGS) in Brazil. He received his PhD in economics from the Federal University of Rio Grande do Sul (UFRGS). From 1991 to 2003, he was on the faculty at the Federal University of Rio Grande (FURG), and during the 1995-1996 Academic Year he was a visiting scholar at the University of Illinois at Urbana-Champaign. He is a member of the Editorial Board of journals Cadernos EBAPE, BR (FGV) and Analise Economica (UFRGS). His research focuses on economic history with an emphasis on the role of institutions in Brazil's economic growth. He is currently a visiting scholar at the University of California-Los Angeles.

Dr. Sabino da Silva Porto Jr.

Professor, Economics Department, Universidade Federal do Rio Grande do Sul, Porto Alegre, Rio Grande do Sul, Brazil

Sabino da Silva Porto Jr. is currently a professor of the economics graduate program (PPGE) at the Federal University of Rio Grande do Sul (UFRGS) in Brazil. He holds a PhD in economics from UFRGS. His research interests are in applied economics.

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