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  • Papadimitriou_and_Johnes_revised_2017_Fina1

    Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Studies in Higher Education on 21/03/2018, available online: https://www.tandfonline.com/doi/full/10.1080/03075079.2018.1450851

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Does merging improve efficiency? A study of English universities

Research output: Contribution to journalJournal article

E-pub ahead of print
<mark>Journal publication date</mark>21/03/2018
<mark>Journal</mark>Studies in Higher Education
Number of pages21
Publication statusE-pub ahead of print
Early online date21/03/18
Original languageEnglish

Abstract

This paper focuses on the effect of merger on university efficiency. In a first stage analysis, efficiency scores of English universities are derived for a 17-year period using the frontier estimation method data envelopment analysis. A second stage analysis explores the effect of merger and other factors on efficiency. We find that mean efficiency for the sector has varied from around 60% to 70%, but that the efficiency levels of the vast majority of individual higher education institutions (HEIs) are not significantly different from each other. Merged HEIs have an efficiency
which is around five percentage points higher post-merger than nonmerging HEIs holding all else constant; but we find that the efficiency impact of merger does not last long (not more than a year) after the merger. The transitory nature of the efficiency gain is an important finding which should be noted by politicians and managers considering a policy of merger.

Bibliographic note

This is an Accepted Manuscript of an article published by Taylor & Francis in Studies in Higher Education on 21/03/2018, available online: https://www.tandfonline.com/doi/full/10.1080/03075079.2018.1450851