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The Cost Structure of Higher Education in Further Education Colleges in England

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Author Info
Pamela Lenton () (Department of Economics, The University of Sheffield)

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Abstract

This paper examines the cost of the provision of higher education courses within further education colleges in England. The further education sector is complex because of the wide range of courses it provides both in terms of subject type and of qualification level. We believe this to be the first attempt to fit a cost function specifically to the further education sector. Cost functions for a sample of 96 colleges over a two-year period, from 2000 to 2002, are fitted using a panel data methodology as well as stochastic frontier analysis. Our findings indicate that most further education colleges are able to benefit from economies of scale. Results from both methodologies suggest the presence of product-specific economies of scale, substantial ray economies of scale and that higher education classroom-based courses, such as business studies, along with vocational courses display substantial economies of scope.

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File URL: http://www.shef.ac.uk/content/1/c6/05/73/19/SERP2006010.pdf
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Publisher Info
Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2006010.

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Length: 26 pages
Date of creation: Sep 2006
Date of revision: Sep 2006
Handle: RePEc:shf:wpaper:2006010

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Related research
Keywords: Stochastic frontier; Education;

Other versions of this item:

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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References listed on IDEAS
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  1. 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. [Downloadable!] (restricted)
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Cited by:
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  1. Geraint Johnes & T Agasisti, 2009. "Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis," Working Papers 005930, Lancaster University Management School, Economics Department. [Downloadable!]
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