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Panel Data Estimates of Public Higher Education Scale and Scope Economies

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  • G. Sav

Abstract

This paper uses panel data spanning the 2000–2001 to 2006–2007 academic years for U.S. public colleges and universities to estimate multi-product cost functions and the economies of scale and scope associated with teaching and research. The empirical results indicate statistically strong institutional effects. That suggests previous cross-sectional studies anchored in 1995–1996 and earlier data have generated potentially biased estimates. Here, estimates are 2006–2007 updates provided separately for doctoral, master, bachelor, and associate level colleges and universities. Controlling for institutional specific effects, the results bring into question some of the previous findings of widespread teaching and research economies of scale and scope. However, there is also evidence of some common ground of empirical support. Copyright International Atlantic Economic Society 2011

Suggested Citation

  • G. Sav, 2011. "Panel Data Estimates of Public Higher Education Scale and Scope Economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(2), pages 143-153, June.
    • Handle: RePEc:kap:atlecj:v:39:y:2011:i:2:p:143-153
    DOI: 10.1007/s11293-011-9273-3
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    References listed on IDEAS

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    1. Dundar, Halil & Lewis, Darrell R., 1995. "Departmental productivity in American universities: Economies of scale and scope," Economics of Education Review, Elsevier, vol. 14(2), pages 119-144, June.
    2. 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 284-290, May.
    3. Lenton, Pamela, 2008. "The cost structure of higher education in further education colleges in England," Economics of Education Review, Elsevier, vol. 27(4), pages 471-482, August.
    4. Koshal, Rajindar K. & Koshal, Manjulika, 1999. "Economies of scale and scope in higher education: a case of comprehensive universities," Economics of Education Review, Elsevier, vol. 18(2), pages 269-277, April.
    5. de Groot, Hans & McMahon, Walter W & Volkwein, J Fredericks, 1991. "The Cost Structure of American Research Universities," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 424-431, August.
    6. David N. Laband & Bernard F. Lentz, 2003. "New Estimates of Economies of Scale and Scope in Higher Education," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 172-183, July.
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    Cited by:

    1. Tirivayi, J.N. & Maasen van den Brink, H. & Groot, W.N.J., 2014. "Size and economies of scale in higher education and the implications for mergers," MERIT Working Papers 2014-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    3. Webber, Douglas A., 2017. "Risk-sharing and student loan policy: Consequences for students and institutions," Economics of Education Review, Elsevier, vol. 57(C), pages 1-9.

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    More about this item

    Keywords

    Cost; Scale economies; Scope economies; Higher education; I00;
    All these keywords.

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General

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