A Study On X-inefficiency Of Higher Education

At present, higher education of our country is in a dilemma. On the one hand, the input to higher education is badly inadequate;on the other hand, the utility of higher education resources is far from efficient. Therefore, we must put emphasis on the efficient utility of education resources. The efficiency of the utility of education resources includes the efficiency of the input & output of education, the efficiency of the division of education resources, and the inefficiency of the division of education resources (X-inefficiency). This dissertation is composed of four parts to discuss the X-inefficiency that universally exists in the area of higher education.The first part illuminates the definition of the X-inefficiency of higher education. The X-inefficiency is a phenomenon that the education resources are not fully utilized because of its inner friction. It mainly originated from the conflict of interests of different benefit unions in higher education, the relationship between clients and agents that exists objectively, the unfair arrangement of property right within higher education, and the softening of encouragement and control system etc.The second part makes an analysis of the performance and disadvantage of X-inefficiency in higher education. The X-inefficiency is an universal phenomena inside universities, which mainly resulted from inadequate devotion of time and energy of the teaching staff and incomplete organization of the universities. Some of the teaching staff are unwilling to teach, pay more attention on the quantity of class than on its quality, and engage themselves in part-time job outside. Some of the administrative personnel treat their duty sloppily and pursue consumption that is correspondent to their post. In the mean time, the improper organization of the universities and the prevailing thought of bureaucracy lead to the inactivity of the teaching staff and thus results in the waste of personnel resources and X-inefficiency of higher education.The third part tries to analyze the possible causes of the X-inefficiency of higher education. The existence of the X-efficiency of higher education is due to the individual's behavior characters and organization of the universities. Human beings have the reason of choice but can not always be rational, which means an individual can not always be able to maximize his behavior. Men's inertia has determined that their activities usuallyhappen within the inert area. Only when the outside pressure reaches its best level, an individual may make a rational decision and break through the inert area. Otherwise, his behavior will be of low efficiency. Owing to the existing of the relationship of agency and the unfair distribution of information, the agents inside the universities usually do their duty immorally or behave according to opportunism to benefit themselves at the expense of their clients, and thus lead to the low efficiency. Government monopoly of higher education renders the universities lack of pressure of competition and impetus for their self-development, which definitely causes the low efficiency. The imperfection of the universities' inner management system which hinders the development of staff's initiative is another reason for the low efficiency. Besides, the X-inefficiency is also a consequence of obscure demarcation of the property right of education, which only requires the universities to take their responsibility of input, while offering them no corresponding right to get benefit.The fourth part proposes some countermeasures against the X-inefficiency of higher education. The relationship between clients and agents should be regulated, and an effective mechanism of encouragement and control should be built up, which depends on the combination of material and spiritual encouragement, supervision and self-control. The initiative of both clients and agents should be fully developed. A mechanism of market competition should be established to foster the employment, enrollment, distribution of the teaching resources, inner management, and transformation of the technology products of the universities. The management system should be improved, and the administrative setup should be reduced to shift the focus of management and authority to the departments in order to improve their initiative. The education property right should be clarified for the establishment of a property system in which one's responsibility, right and benefit are united so that the universities not only own the right of management but have the right of making profits. The speciality of the property right of labor resources should also be completely valued. These are some valid ways of the reduction of X-inefficiency in higher education.