Efficiency of Italian universities: a comparative analysis of public, private, and online institutions

This paper investigates the efficiency of Italian universities, comparing public, private, and online institutions over the period 2015-2022. It provides the first analysis of online university efficiency in Italy. Using a Generalised True Random Effects stochastic frontier model, we disentangle persistent and transient inefficiencies while accounting for unobserved heterogeneity. Results reveal significant differences across university types, especially when research output is included in the production function. Online universities, despite their rapid growth, exhibit lower efficiency due to limited research activity. Our findings suggest that institutional missions and structural configurations shape performance, and that efficiency assessments should reflect universities' multiple goals.