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Economies of Scale and Scope in Japanese Private Universities

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  • Keiji Hashimoto
  • Elchanan Cohn

Abstract

A flexible fixed-cost quadratic function is employed to estimate multiple-output cost functions for 94 private universities in Japan for the year 1991. The three outputs employed are undergraduate teaching, graduate teaching and research. Our results provide evidence of ray economics of scale and both global and product-specific economies of scope. Product-specific economics of scale are shown for undergraduate and graduate teaching in relatively small universities and for research in relatively large universities. Implications of the findings are discussed.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:edecon:v:5:y:1997:i:2:p:107-115
    DOI: 10.1080/09645299700000010
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    References listed on IDEAS

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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
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    Cited by:

    1. Kuo, Jenn-Shyong & Ho, Yi-Cheng, 2008. "The cost efficiency impact of the university operation fund on public universities in Taiwan," Economics of Education Review, Elsevier, vol. 27(5), pages 603-612, October.
    2. Daraio, Cinzia & Bonaccorsi, Andrea & Simar, Léopold, 2015. "Efficiency and economies of scale and specialization in European universities: A directional distance approach," Journal of Informetrics, Elsevier, vol. 9(3), pages 430-448.
    3. Tirivayi, J.N. & Maasen van den Brink, H. & Groot, W.N.J., 2014. "Size and economies of scale in higher education and the implications for mergers," MERIT Working Papers 066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. 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.
    5. repec:spr:reihed:v:58:y:2017:i:5:d:10.1007_s11162-016-9434-y is not listed on IDEAS
    6. Kraus, Margit, 2004. "Schätzung von Kostenfunktionen für die bundesdeutsche Hochschulausbildung: Ein konzeptioneller Ansatz im empirischen Test," ZEW Discussion Papers 04-36, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Valadkhani, Abbas & Worthington, Andrew, 2005. "Ranking and Clustering Australian University Research Performance, 1998-2002," Economics Working Papers wp05-19, School of Economics, University of Wollongong, NSW, Australia.
    8. 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.
    9. Fieger, Peter & Villano, Renato & Cooksey, Ray, 2015. "Efficiency of Australian TAFE and further education providers," MPRA Paper 64626, University Library of Munich, Germany.
    10. Kong, Wei-Hsin & Fu, Tsu-Tan, 2012. "Assessing the performance of business colleges in Taiwan using data envelopment analysis and student based value-added performance indicators," Omega, Elsevier, vol. 40(5), pages 541-549.
    11. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    12. Andrea Bonaccorsi & Cinzia Daraio & Leopold Simar, 2014. "Efficiency and economies of scale and scope in European universities. A directional distance approach," DIAG Technical Reports 2014-08, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    13. Gimenez, Victor M. & Martinez, Jose Luis, 2006. "Cost efficiency in the university: A departmental evaluation model," Economics of Education Review, Elsevier, vol. 25(5), pages 543-553, October.
    14. Alka Obadić & Aleksander Aristovnik, 2011. "Relative efficiency of higher education in Croatia and Slovenia: an international comparison," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 362-376, June.
    15. Ville, Simon & Valadkhani, Abbas & O'Brien, Martin, 2005. "The Distribution of Research Performance Across Australian Universities, 1992-2003, and Its Implications for Higher Education Funding Models," Economics Working Papers wp05-26, School of Economics, University of Wollongong, NSW, Australia.
    16. 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.
    17. repec:spr:scient:v:112:y:2017:i:3:d:10.1007_s11192-017-2442-7 is not listed on IDEAS
    18. 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.
    19. Watanabe, Satoshi P & Murasawa, Masataka & Abe, Yasumi, 2013. "Internal Staff Allocation and the Changing Workload of Japanese Professoriate: A Multilevel Statistical Analysis with Simulations," University of California at Berkeley, Center for Studies in Higher Education qt4td8v6w6, Center for Studies in Higher Education, UC Berkeley.
    20. 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.
    21. Fieger, Peter & Villano, Renato & Cooksey, Ray, 2015. "Two dimensional efficiency measurements in Australian TAFE Institutes," MPRA Paper 64625, University Library of Munich, Germany.
    22. 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.
    23. Nana Zubek & Christian H.C.A. Henning, 2016. "Local Government, Spatial Spillovers and the Absorption of EU Structural Funds," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 368-397, June.
    24. Tsu-Tan Fu & Cliff J. Huang & Flora F. Tien, 2008. "University Cost Structure In Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 26(4), pages 651-662, October.

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