Law and University Efficiency: The Amendment of the University Law in Taiwan

This paper examines the effect of the amendment of an education-related law on university efficiency using the 1994 University Law amendment in Taiwan as a case study. The results indicate that prior to the 1994 amendment; private universities operate in a more efficient manner than public universities. This difference disappears a year after the amendment, but the beneficial effect of this amendment on public universities diminishes two years after the amendment. The finding indicates that the recent (2005) amendment is in a right direction concerning the size and authority of university senate.