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Panel Data Estimates of Public Higher Education Scale and Scope Economies

  • G. Sav

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    This paper uses panel data spanning the 2000–2001 to 2006–2007 academic years for U.S. public colleges and universities to estimate multi-product cost functions and the economies of scale and scope associated with teaching and research. The empirical results indicate statistically strong institutional effects. That suggests previous cross-sectional studies anchored in 1995–1996 and earlier data have generated potentially biased estimates. Here, estimates are 2006–2007 updates provided separately for doctoral, master, bachelor, and associate level colleges and universities. Controlling for institutional specific effects, the results bring into question some of the previous findings of widespread teaching and research economies of scale and scope. However, there is also evidence of some common ground of empirical support. Copyright International Atlantic Economic Society 2011

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    File URL: http://hdl.handle.net/10.1007/s11293-011-9273-3
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    Article provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.

    Volume (Year): 39 (2011)
    Issue (Month): 2 (June)
    Pages: 143-153

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    Handle: RePEc:kap:atlecj:v:39:y:2011:i:2:p:143-153
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    1. 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.
    2. Koshal, Rajindar K. & Koshal, Manjulika, 1999. "Economies of scale and scope in higher education: a case of comprehensive universities," Economics of Education Review, Elsevier, vol. 18(2), pages 269-277, April.
    3. de Groot, Hans & McMahon, Walter W & Volkwein, J Fredericks, 1991. "The Cost Structure of American Research Universities," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 424-31, August.
    4. David N. Laband & Bernard F. Lentz, 2003. "New Estimates of Economies of Scale and Scope in Higher Education," Southern Economic Journal, Southern Economic Association, vol. 70(1), pages 172-183, July.
    5. Dundar, Halil & Lewis, Darrell R., 1995. "Departmental productivity in American universities: Economies of scale and scope," Economics of Education Review, Elsevier, vol. 14(2), pages 119-144, June.
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