•How does third-party funding affect university efficiency and production frontier?•We exploit university-level panel data in 8 European countries between 1994 and 2006.•A stochastic frontier estimates the differential impact on frontier and efficiency.•International Public funds decrease the production frontier but decrease efficiency.•Tuition fees increase the production frontier but decrease efficiency.
Economics of Education Review – Elsevier
Published: Jun 1, 2016
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