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2013 (Vol. 5, Issue: 2)
Article Information:

An Efficiency and Total Factor Productivity Analysis of the Islamic Azad University

Mohammad Taher Ahmadi Shadmehri, Bahram Fathi and Mohammad Ovisi
Corresponding Author:  Mohammad Ovisi 

Key words:  Efficiency, elasticity, Islamic Azad University (IAU), productivity, stochastic frontier analysis, ,
Vol. 5 , (2): 25-31
Submitted Accepted Published
January 22, 2013 February 22, 2013 June 20, 2013
Abstract:

This study examines the role productivity and efficiency in the Islamic Azad University (IAU) of Iran by using the stochastic frontier production function over the period 2006 through 2009. The focus of this study is using a model of Stochastic Frontier Analysis (SFA). The gap between the most efficient and least efficient region has decreased by 34% across the study. An often made assumption of constant returns to scale may not be appropriate for IAU of regions. The elasticity of capital and labor are calculated at 0.376 and 0.530 respectively indicating diminishing returns to scale. In IAU, TFP growth stems from both improved technical efficiency and technological progress. TFP growth accounts for 84.2% of all growth in output. Just over 31% of the regions output growth IAU has experienced between 2006 and 2009 is the result of advancement in the production frontier.
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  Cite this Reference:
Mohammad Taher Ahmadi Shadmehri, Bahram Fathi and Mohammad Ovisi, 2013. An Efficiency and Total Factor Productivity Analysis of the Islamic Azad University.  Current Research Journal of Economic Theory, 5(2): 25-31.
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ISSN (Online):  2042-485X
ISSN (Print):   2042-4841
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