The Efficiency of Taiwan’s HTVE (Higher Technological and Vocational Education) Institutions: A Stochastic Frontier Estimation of CES (Constant Elasticity Substitution) Cost Function

• In Event: State Policies and Student Outcomes

Abstract

In most Asian countries, higher education institutions were highly supported by government, especially in Taiwan. With expanding in higher education, governments have been faced with increasing pressure on their finances, giving rise to the need to measure university efficiency. We applied modified estimation techniques which after the stochastic frontier CES cost function made by Izadi et al. (2002), and use the half-normal residuals generated by the stochastic frontier estimation to construct measures of technical efficiency for each university in our sample. Preliminary finding demonstrate that in a highly centralized higher education authority, government's evaluation seems did not consist with institution operating performance, and high school graduates' choice did not consist with universities' operating performance, due to the traditional impressions.

Authors

• Chien-Ern Huang, Ling Tung University

• Young Yuan, Ling Tung University

• Chien-Fu Huang, Ling Tung University