Multi-Product Cost Functions and the Funding of Tuition in UK Universities
AbstractA 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 InfoPaper provided by Department of Economics, University of Lancaster in its series Working Papers with number 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
Web page: http://www.lums.lancs.ac.uk/econ/wkpap.htm
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Other versions of this item:
- Geraint Johnes, 1996. "Multi-product cost functions and the funding of tuition in UK universities," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 557-561.
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