Technical efficiency of State Universities and Colleges (SUCs) in the Philippines: A Data Envelopment Analysis (DEA) Approach

Abstract

This study utilizes data envelopment analysis (DEA) to evaluate the technical efficiency of 101 state universities and colleges (SUCs) in the Philippines. Using panel data from 2017 to 2021, it employs the output-oriented Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models of DEA, considering two (2) inputs like faculty numbers and financial resources (personnel services, Maintenance, and Other Operating Expenses or MOOE, capital outlay), and measuring two (2) outputs through the total number of student enrollment and the total number of graduates. The findings reveal that out of the 101 SUCs in Region XI, only eight are deemed efficient under the output-orientated CRS model, whereas 11 are identified as efficient under the VRS model. This variance in results between the 2 DEA models employed can be attributed to their inherent methodologies: CRS tends to yield lower efficiency scores, while VRS tends to produce higher efficiency scores. The findings contribute to discussions on higher education efficiency, providing valuable insights for policymakers, administrators, and stakeholders. The study also lays the groundwork for future research on technical efficiency and productivity factors in SUCs, facilitating targeted interventions and advancements in the Philippines's higher education landscape.