Integrating efficiency and effectiveness: A composite indicator approach to assess the performance of Federal Institutes of education

This study evaluates the performance of Brazilian Federal Institutes of Education through an integrated framework that jointly assesses efficiency and effectiveness. Efficiency is measured using Data Envelopment Analysis with a Directional Distance Function (DEA–DDF) combined with a composite indicator incorporating desirable and undesirable outputs, while effectiveness is assessed against institutional and regulatory targets. The analysis covers 38 Institutes between 2017 and 2023 using panel data to capture longitudinal dynamics. The results reveal heterogeneous performance profiles: 42% of institutions performed above average in both dimensions, 34% underperformed in both, and the remainder exhibited mismatches between efficiency and effectiveness. Institutions operating on the efficiency frontier required lower current expenditure per enrolment than the least efficient institutions, highlighting the relevance of institutional management and resource allocation practices. The model also identifies benchmark institutions and establishes tailored improvement targets for inefficient units. By integrating efficiency and effectiveness within a single analytical framework, the study supports benchmarking analyses, evidence-informed management, and policy discussions on improving the use of public resources in education.