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Are Public Universities of Bangladesh Cost Efficient? An Empirical Evidence

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  • Shamsul Arifeen Khan Mamun

    (IUBAT, 4 Embarkment Drive, Uttara Model Town, Dhaka 1230, Bangladesh. Email: sakmamun@gmail.com)

Abstract

This article empirically estimates a stochastic cost function and thereby estimates local economies of scale and cost-efficiency measures of the public universities in Bangladesh. A flexible quadratic cost function, an unbalanced panel dataset and the maximum likelihood estimation technique have been used in the study. The empirical results show that though the public universities have very high relative efficiency measures, they are scale inefficient.

Suggested Citation

  • Shamsul Arifeen Khan Mamun, 2011. "Are Public Universities of Bangladesh Cost Efficient? An Empirical Evidence," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(2), pages 221-237, September.
    • Handle: RePEc:sae:soueco:v:12:y:2011:i:2:p:221-237
    DOI: 10.1177/139156141101200202
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    References listed on IDEAS

    as
    1. Keiji Hashimoto & Elchanan Cohn, 1997. "Economies of Scale and Scope in Japanese Private Universities," Education Economics, Taylor & Francis Journals, vol. 5(2), pages 107-115.
    2. Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February.
    3. Johnes, Geraint & Johnes, Jill, 2009. "Higher education institutions' costs and efficiency: Taking the decomposition a further step," Economics of Education Review, Elsevier, vol. 28(1), pages 107-113, February.
    4. Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-290, May.
    5. 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.
    6. Koshal, Rajindar K. & Koshal, Manjulika & Gupta, Ashok, 2001. "Multi-product total cost function for higher education: a case of bible colleges," Economics of Education Review, Elsevier, vol. 20(3), pages 297-303, June.
    7. Melville McMillan & Wing Chan, 2006. "University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non-stochastic Methods," Education Economics, Taylor & Francis Journals, vol. 14(1), pages 1-30.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    9. 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.
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    Cited by:

    1. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).

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    More about this item

    Keywords

    JEL: I21; Bangladesh; multi-product cost function; cost-efficiency measures;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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