Abstract

In recent years, the importance of universities for socio-economic development has been increasingly acknowledged in the literature. The aim of this study is to analyze the first effects of university reform on the efficiency performance of public universities with particular reference to increasing proportion of University Ordinary Financing Fund (FFO), allocated based on competitive performances. In modelling teaching efficiency, using a robust non-parametric technique, we employ a simple input/output framework, where inputs are represented by professors, facilities and students; outputs are graduates, PhD students and quality of research. Moreover, for measuring productivity changes, we use a Malmquist index analysis in the period 2008-2009 to 2010-2011 and we decompose productivity growth into technical efficiency and technological change. The results reveal that total factor productivity rose between 2008-2009 and 2010-2011, especially in the South of Italy, and that managerial efficiency is positively related to baseline efficiency - namely, there is a minor role of socio-economic variables in affecting efficiency scores.