EFFICIENCY BEYOND THE EFFICIENCY FRONTIER: PUBLIC INVESTMENT, BUDGETARY VOLATILITY, AND INSTITUTIONAL CAPACITY AT THE UFPB CENTER FOR MEDICAL SCIENCES

Abstract

This chapter analyzes the relationship between relative efficiency, public investment, and institutional capacity at the Center for Medical Sciences of the Federal University of Paraíba (CCM/UFPB), using its position on the efficiency frontier—determined via Data Envelopment Analysis (DEA)—and the trajectory of committed capital expenditures between 2015 and 2025 as reference points. The longitudinal analysis demonstrates that relative efficiency and investment intensity constitute distinct yet complementary dimensions of public management. The results reveal significant budgetary volatility during the period, characterized by a rise in investments in 2020 amidst the COVID-19 pandemic; a sharp contraction in 2021 and 2022, linked to institutional changes and remote work; and a substantial recovery in 2023, accompanying the resumption of in-person activities. The study further highlights that the total committed amount must be analyzed in conjunction with the number of commitments, the average value of transactions, and the institutional context. It concludes that a maximum efficiency score does not, in isolation, serve as a blanket certification of good management, just as a reduction or increase in spending does not, by itself, constitute evidence of higher or lower efficiency. Integrating performance indicators, budgetary data, and institutional context provides a more comprehensive understanding of public efficiency and offers valuable insights for planning, governance, and oversight within federal higher education institutions.