The DEA method in public sector institutions efficiency analysis on the basis of higher education institutions

Public sector is being currently under intensified pressure to increase efficiency and improve quality of its activity. The pressure of government, local society, stake holders and media stimulates public sector development and motivates to experiment with new management methods. In the article basic premises of comparative analysis of public sector institutions efficiency are presented. In the global studies on comparative analysis of efficiency the Data Envelopment Analysis (DEA) is the leading method applied. In the article the general concept and key features of the DEA method are described. The examples of DEA implementation in different areas of public sector worldwide are presented. The conclusion is formulated that undertaking similar studies in Polish environment is justified. Considerations are illustrated with the calculation of Polish public technical universities efficiency. In the DEA model proposed the didactic subsidy comprises the input and the number of students and scientific grants is treated as the output. It is indicated that the majority of the universities under scrutiny possesses reserves of technical and allocative efficiency. The authors are convinced that the comparative analysis of efficiency can be one of the important stimulators of public service quality, public spending and public institutions management improvement.