Advanced Search
MyIDEAS: Login

New Estimates of Economies of Scale and Scope in Higher Education

Contents:

Author Info

  • David N. Laband

    ()
    (Forest Policy Center, School of Forestry and Wildlife Sciences, Auburn University)

  • Bernard F. Lentz

    (Institutional Research and Analysis, University of Pennsylvania)

Abstract

Following Cohn, Rhine, and Santos (1989), we reestimate cost functions for 1492 private and 1450 public institutions of higher education (IHEs) in the United States, using data for fiscal year 1995–1996. Costs are modeled as a function of the level of production of three outputs: undergraduate education, graduate education, and externally funded research. We find that public and private IHEs are characterized by significantly different cost functions. At the sample means of the variables, we estimate that public and private IHEs enjoy both ray economies of scale and product-specific economies with respect to production of all three outputs. However, we also find that, at the sample means, both public and private institutions are characterized by diseconomies of scope in the production of these three outputs. Our findings suggest that both public and private IHEs could reduce their unit costs of operation by growing relative to the current mean levels of production.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 70 (2003)
Issue (Month): 1 (July)
Pages: 172-183

as in new window
Handle: RePEc:sej:ancoec:v:70:1:y:2003:p:172-183

Contact details of provider:
Web page: http://www.southerneconomic.org/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Schubert , Torben, 2013. "Are there Scale Economies in Scientific Production? On the Topic of Locally Increasing Returns to Scale," CIRCLE Electronic Working Papers 2013/43, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  2. repec:lan:wpaper:4358 is not listed on IDEAS
  3. Copenhagen Economics & KPMG, 2011. "VAT in the Public Sector and Exemptions in the Public Interest," Taxation Studies 0037, Directorate General Taxation and Customs Union, European Commission.
  4. 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.
  5. Martin, Robert E., 2004. "Tuition discounting without tears," Economics of Education Review, Elsevier, vol. 23(2), pages 177-189, April.
  6. Pamela Lenton, 2006. "The Cost Structure of Higher Education in Further Education Colleges in England," Working Papers 2006010, The University of Sheffield, Department of Economics, revised Sep 2006.
  7. repec:lan:wpaper:4487 is not listed on IDEAS
  8. Copenhagen Economics, 2013. "VAT in the Public Sector and Exemptions in the Public Interest," Taxation Studies 0045, Directorate General Taxation and Customs Union, European Commission.
  9. Gholamreza Hajargasht & Tim Coelli & D. S. Prasada Rao, 2006. "A Dual Measure of Economies of Scope," CEPA Working Papers Series WP032006, School of Economics, University of Queensland, Australia.
  10. Brandt, Tasso & Schubert, Torben, 2012. "Is the University Model an Organizational Necessity? Scale and Agglomeration Effects in Science," CIRCLE Electronic Working Papers 2012/1, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  11. G. Sav, 2011. "Panel Data Estimates of Public Higher Education Scale and Scope Economies," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(2), pages 143-153, June.
  12. repec:lan:wpaper:4792 is not listed on IDEAS
  13. Longlong, Hou & Fengliang, Li & Weifang, Min, 2009. "Multi-product total cost functions for higher education: The case of Chinese research universities," Economics of Education Review, Elsevier, vol. 28(4), pages 505-511, August.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:70:1:y:2003:p:172-183. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

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.