IDEAS home Printed from https://ideas.repec.org/a/phs/prejrn/v50y2013i2p83-104.html
   My bibliography  Save this article

The cost efficiency of state universities and colleges in the Philippines

Author

Listed:
  • Mitzie Irene P. Conchada

    (School of Economics De Lasalle University)

Abstract

As part of its effort to combat poverty and improve the countryÕs competitiveness through education, the Philippine government provides financial support to hundreds of thousands of students coursed through subsidized state universities and colleges (sucs), which today number 110 all over the archipelago. The effectiveness with which these institutions use taxpayersÕ money is under constant public scrutiny. We explore the cost efficiency of sucs, taking into consideration their ability to produce graduates and board passers given the budget allocation they receive annually, for the period 2006Ð2010. Universities are analysed separately from colleges owing to the inherent differences in their operative structures. State universities are found to be more cost efficient than state colleges, a fact attributable in part to their larger scale and scope of operation. Calculations show that state universities are characterized by economies of scale and scope, while state colleges are not. This has significant implications for their educational function.

Suggested Citation

  • Mitzie Irene P. Conchada, 2013. "The cost efficiency of state universities and colleges in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 50(2), pages 83-104, December.
    • Handle: RePEc:phs:prejrn:v:50:y:2013:i:2:p:83-104
    as

    Download full text from publisher

    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/899/799
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rosario G. Manasan & Janet S. Cuenca & Eden C. Villanueva, 2007. "Benefit Incidence of Public Spending on Education in the Philippines," Governance Working Papers 21930, East Asian Bureau of Economic Research.
    2. Edita A. Tan, 2011. "WhatÕs wrong with the Philippine higher education?," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 48(1), pages 147-184, June.
    3. Michael M. Alba, 1995. "Translog Variable Cost Function Estimates for Philippine Hospitals," UP School of Economics Discussion Papers 199509, University of the Philippines School of Economics.
    4. Orbeta, Aniceto Jr. C., 2002. "Education, Labor Market, and Development: A Review of the Trends and Issues in the Philippines for the Past 25 Years," Discussion Papers DP 2002-19, Philippine Institute for Development Studies.
    5. Cuenca, Janet S., 2011. "Efficiency of State Universities and Colleges in the Philippines: a Data Envelopment Analysis," Discussion Papers DP 2011-14, Philippine Institute for Development Studies.
    6. Pulley, Lawrence B & Braunstein, Yale M, 1992. "A Composite Cost Function for Multiproduct Firms with an Application to Economies of Scope in Banking," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 221-230, May.
    7. Manasan, Rosario G., 2012. "Rationalizing National Government Subsidies for State Universities and Colleges," Discussion Papers DP 2012-03, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Berger, Allen N. & Hasan, Iftekhar & Zhou, Mingming, 2010. "The effects of focus versus diversification on bank performance: Evidence from Chinese banks," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1417-1435, July.
    2. Bottasso, Anna & Conti, Maurizio & Vannoni, Davide, 2019. "Scale and (quasi) scope economies in airport technology. An application to UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 150-164.
    3. Salas, J.M. Ian S. & Abrigo, Michael Ralph M. & Racelis, Rachel H., 2012. "Implications of Philippine Trends in Education Financing and Projected Change in School-age Population on Education Expenditures by Income Group: Using National Transfer Accounts Results," Discussion Papers DP 2012-34, Philippine Institute for Development Studies.
    4. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Economies of Scale and Scope in the Swiss Multi-Utilities Sector," CEPE Working paper series 07-59, CEPE Center for Energy Policy and Economics, ETH Zurich.
    5. J. Colin Glass & Donal McKillop, 2006. "The impact of differing operating environments on US Credit Union Performance, 1993-2001," Applied Financial Economics, Taylor & Francis Journals, vol. 16(17), pages 1285-1300.
    6. Fetz, Aurelio & Filippini, Massimo, 2010. "Economies of vertical integration in the Swiss electricity sector," Energy Economics, Elsevier, vol. 32(6), pages 1325-1330, November.
    7. Muliaman Hadad & Maximilian Hall & Karligash Kenjegalieva & Wimboh Santoso & Richard Simper, 2011. "Banking efficiency and stock market performance: an analysis of listed Indonesian banks," Review of Quantitative Finance and Accounting, Springer, vol. 37(1), pages 1-20, July.
    8. Cuenca, Janet S., 2011. "Efficiency of State Universities and Colleges in the Philippines: a Data Envelopment Analysis," Discussion Papers DP 2011-14, Philippine Institute for Development Studies.
    9. Michael R.M. Abrigo & Sang-Hyop Lee & Donghyun Park, 2018. "Human Capital Spending, Inequality, and Growth in Middle-Income Asia," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(6), pages 1285-1303, May.
    10. Imanirad, Raha & Cook, Wade D. & Aviles-Sacoto, Sonia Valeria & Zhu, Joe, 2015. "Partial input to output impacts in DEA: The case of DMU-specific impacts," European Journal of Operational Research, Elsevier, vol. 244(3), pages 837-844.
    11. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Girls take over: Long-term impacts of an early stage education intervention in the Philippines," IFPRI discussion papers 1144, International Food Policy Research Institute (IFPRI).
    12. Yamauchi, Futoshi & Tiongco, Marites, 2013. "Why women are progressive in education? Gender disparities in human capital, labor markets, and family arrangement in the Philippines," Economics of Education Review, Elsevier, vol. 32(C), pages 196-206.
    13. Sudip Chattopadhyay, 2021. "Cost-efficiency in the patient centered medical home model: New evidence from federally qualified health centers," International Journal of Health Economics and Management, Springer, vol. 21(3), pages 295-316, September.
    14. David B. Humphrey, 1994. "Delivering deposit services: ATMs versus branches," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 59-81.
    15. Carbo Valverde, Santiago & Fernandez, Francisco Rodriguez, 2005. "New evidence of scope economies among lending, deposit-taking, loan commitments and mutual fund activities," Journal of Economics and Business, Elsevier, vol. 57(3), pages 187-207.
    16. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2014. "The Costs of Disposal and Recycling: An Application to Italian Municipal Solid Waste Services," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 896-909, May.
    17. Ogunyinka, Ebenezer & Featherstone, Allen M., 2003. "On The Choice Of Functional Forms In The Measurement Of Scale And Scope Economies: Generalized Box-Cox And Composite Cost Functions," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35057, Southern Agricultural Economics Association.
    18. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2014. "Cost function estimation of multi-service firms. Evidence from the passenger transport industry," Carlo Alberto Notebooks 380, Collegio Carlo Alberto.
    19. Robert DeYoung & Kenneth Spong & Richard J. Sullivan, 1999. "Who's minding the store? motivating and monitoring hired managers at small, closely held firms: the case of commercial banks," Working Paper Series WP-99-17, Federal Reserve Bank of Chicago.
    20. Michael Delgado & Christopher Parmeter & Valentina Hartarska & Roy Mersland, 2015. "Should all microfinance institutions mobilize microsavings? Evidence from economies of scope," Empirical Economics, Springer, vol. 48(1), pages 193-225, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:50:y:2013:i:2:p:83-104. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.