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A DEA Decision Making Model for Higher
Education Funding. Edition No. 1
VDM Publishing House, Nov 2008, Pages: 108
Funding Higher Education (HE) in Mexico has been a
topic of endless discussion. Both universities and
government feel the current funding distribution
process is not appropriate. The current funding
mechanism consists of annual budgets given
unconditionally to the universities; the allocation
is not associated with inputs/outputs to the HE
system, but is simply related to the previous budget
plus an additional fund. This system clearly does
not provide incentive for outstanding performance,
just as it does not punish poor performance. This
book presents a methodology to develop an efficiency-
based decision-making model that will provide with a
more accountable funding distribution process for
the 34 Mexican Public State Universities. The method
was developed using the data envelopment analysis
decision theory framework. 24 alternative cases were
developed using different variables. The model
describes the performance efficiencies of the
universities based on inputs and outputs to the HE
system and proposes future funding based on those
measurements.
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