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Multi-Product Cost Functions and the Funding of Tuition in UK Universities

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  • Geraint Johnes

Abstract

A quadratic multi-product cost function is estimated for UK universities prior to the abolition of the binary divide. The arguments of the function include linear and interaction terms in undergraduate tuition, postgraduate tuition and research, and in each case these are separately identified for the (broadly defined) arts and sciences. The preferred specification is used to evaluate ray economies of scale, product-specific economies of scale and economies of scope. Estimates of average incremental costs are also provided. Results from OLS and stochastic frontier methods are compared.

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Bibliographic Info

Paper provided by Department of Economics, University of Lancaster in its series Working Papers with number ec6/94.

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Handle: RePEc:wuk:lanedp:ec6/94

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Postal: Department of Economics The Management School Lancaster University Lancaster LA1 4YX UK
Phone: +44 (0) 1524 594228
Fax: +44 (0) 1524 594244
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Web page: http://www.lums.lancs.ac.uk/econ/wkpap.htm
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Cited by:
  1. repec:lan:wpaper:4813 is not listed on IDEAS
  2. repec:ebl:ecbull:v:4:y:2007:i:15:p:1-9 is not listed on IDEAS
  3. Geraint Johnes, 2007. "Funding Formulae where Costs Legitimately Differ: The Case of Higher Education in England," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 385-404.
  4. repec:lan:wpaper:4381 is not listed on IDEAS
  5. repec:lan:wpaper:1121 is not listed on IDEAS
  6. G. Johnes, 1997. "Costs in UK Higher Education: A System-Wide Perspective," CERT Discussion Papers 9707, Centre for Economic Reform and Transformation, Heriot Watt University.
  7. E Thanassoulis & G Johnes & J Johnes, 2005. "An analysis of costs in institutions of higher education in England," Working Papers 566942, Lancaster University Management School, Economics Department.
  8. Malcolm Abbot & Hristos Doucouliagos, 2003. "Research Output of Australian Universities," Economics Series 2003_04, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  9. repec:lan:wpaper:1058 is not listed on IDEAS
  10. Abdullahi Abdulkadri & Michael Langemeier & Allen Featherstone, 2006. "Estimating economies of scope and scale under price risk and risk aversion," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 191-201.
  11. repec:lan:wpaper:4509 is not listed on IDEAS
  12. 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.
  13. repec:lan:wpaper:1043 is not listed on IDEAS
  14. Colin Glass, J. & McCallion, Gillian & McKillop, Donal G. & Rasaratnam, Syamarlah & Stringer, Karl S., 2006. "Implications of variant efficiency measures for policy evaluations in UK higher education," Socio-Economic Planning Sciences, Elsevier, vol. 40(2), pages 119-142, June.
  15. Geraint Johnes & Manuel Salas-Velasco, 2007. "The Determinants Of Costs And Efficiencies Where Producers Are Heterogeneous: The Case Of Spanish Universities," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-9.
  16. repec:lan:wpaper:1044 is not listed on IDEAS
  17. Abbott, M. & Doucouliagos, C., 2003. "The efficiency of Australian universities: a data envelopment analysis," Economics of Education Review, Elsevier, vol. 22(1), pages 89-97, February.

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