Higher education institutions' costs and efficiency: Taking the decomposition a further step
AbstractA multiproduct cost function is estimated for English higher education institutions using a panel of data from recent years. The panel approach allows estimation by means of a random parameter stochastic frontier model which provides considerable new insights in that it allows the impact on costs of inter-institutional differences in the cost function itself to be distinguished from inter-institutional differences in efficiency. The approach used here therefore resembles in some respects the non-parametric methods of efficiency evaluation. We report also on measures of average incremental cost of provision and on returns to scale and scope.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economics of Education Review.
Volume (Year): 28 (2009)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/econedurev
Stochastic frontier Random parameter models Costs Higher education;
Other versions of this item:
- G Johnes & J Johnes, 2005. "Higher education institutions' costs and efficiency: taking the decomposition a further step," Working Papers 574007, Lancaster University Management School, Economics Department.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Geraint Johnes, 1996.
"Multi-product cost functions and the funding of tuition in UK universities,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 3(9), pages 557-561.
- Geraint Johnes, . "Multi-Product Cost Functions and the Funding of Tuition in UK Universities," Working Papers ec6/94, Department of Economics, University of Lancaster.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
- Geraint Johnes, 2004. "A Fourth Desideratum: The CES Cost Function and the Sustainable Configuration of Multiproduct Firms," Bulletin of Economic Research, Wiley Blackwell, vol. 56(4), pages 329-332, October.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Steven B. Caudill, 2003. "Estimating a mixture of stochastic frontier regression models via the em algorithm: A multiproduct cost function application," Empirical Economics, Springer, vol. 28(3), pages 581-598, July.
- Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February.
- Cooper, Samuel T. & Cohn, Elchanan, 1997. "Estimation of a frontier production function for the South Carolina educational process," Economics of Education Review, Elsevier, vol. 16(3), pages 313-327, June.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
- Tsionas, E.G., 2001.
"Stochastic Frontier Models with Random Coefficients,"
DEOS Working Papers
130, Athens University of Economics and Business.
- Efthymios G. Tsionas, 2002. "Stochastic frontier models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(2), pages 127-147.
- Tsionas, E.G., 2001. "Stochastic Frontier Models with Random Coefficients," Athens University of Economics and Business 130, Athens University of Economics and Business, Department of International and European Economic Studies.
- Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-90, May.
- Ray Barrell, 1999. "Labour productivity and convergence within Europe: East German and Irish experience," NIESR Discussion Papers 185, National Institute of Economic and Social Research.
- Johnes, Geraint, 1997. "Costs and Industrial Structure in Contemporary British Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 727-37, May.
- Geraint Johnes, 2007.
"Funding Formulae where Costs Legitimately Differ: The Case of Higher Education in England,"
Taylor & Francis Journals, vol. 15(4), pages 385-404.
- G Johnes, 2005. "Funding formulae where costs legitimately differ: the case of higher education in England," Working Papers 574022, Lancaster University Management School, Economics Department.
- Haelermans, Carla & De Witte, Kristof & Blank, Jos L.T., 2012. "On the allocation of resources for secondary schools," Economics of Education Review, Elsevier, vol. 31(5), pages 575-586.
- G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 13, June.
- repec:lan:wpaper:4792 is not listed on IDEAS
- E Thanassoulis & M Kortelainen & G Johnes & J Johnes, 2009. "Costs and Efficiency of Higher Education Institutions in England: A DEA Analysis," Working Papers 598827, Lancaster University Management School, Economics Department.
- repec:lan:wpaper:4381 is not listed on IDEAS
- repec:lan:wpaper:1031 is not listed on IDEAS
- Javier García-Estévez & Néstor Duch-Brown, 2012. "Student graduation: to what extent does university expenditure matter?," Working Papers 2012/4, Institut d'Economia de Barcelona (IEB).
- Erkoc, Taptuk Emre, 2013. "Estimating Economic Efficiencies of Public Sector Organisations with Stochastic Frontier Analysis: Evidence from Turkish Higher Education," MPRA Paper 54101, University Library of Munich, Germany.
- repec:lan:wpaper:4813 is not listed on IDEAS
- Tanja Kirjavainen, 2007. "Efficiency of Finnish Upper Secondary Schools: An Application of Stochastic Frontier Analysis with Panel Data," Discussion Papers 428, Government Institute for Economic Research Finland (VATT).
- Haelermans, Carla & Ruggiero, John, 2013. "Estimating technical and allocative efficiency in the public sector: A nonparametric analysis of Dutch schools," European Journal of Operational Research, Elsevier, vol. 227(1), pages 174-181.
- Massimo Filippini & Martin Koller, 2012. "Cost Efficiency Measurement in Postal Delivery Networks," Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano 1206, USI Università della Svizzera italiana.
- repec:lan:wpaper:4509 is not listed on IDEAS
- T Agasisti & G Johnes, 2009. "Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis," Working Papers 599308, Lancaster University Management School, Economics Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.