This study investigates why some economics departments in Australian universities are more research productive than others. The hypothesis is simple: research productivity depends upon the human capital of department members and the department-specific conditions under which they work. A Tobit model is used to estimate the magnitude of the two effects. Both are found to be important. Our results help explain why a small number of departments consistently outperform the others in studies that rank Australian economics departments according to research output. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd/University of Adelaide and Flinders University .
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