Higher education institutions' costs and efficiency: taking the decomposition a further step
A multiproduct cost function is estimated for English higher education institutions using a panel of data from recent years. The panel approach allows estimation by means of a random parameter stochastic frontier model which provides considerable new insights in that it allows the impact on costs of inter-institutional differences in the cost function itself to be distinguished from inter-institutional differences in efficiency. The approach used here therefore resembles in some respects the non-parametric methods of efficiency evaluation. We report also on measures of average incremental cost of provision and on returns to scale and scope.
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| Date of creation: | 2005 |
| Handle: | RePEc:lan:wpaper:574007 |
| Contact details of provider: | Postal: LANCASTER LA1 4YX Phone: +44 (1524) 594601 Fax: +44 (1524) 594244 Web page: http://www.lancaster.ac.uk/lums Email: More information through EDIRC
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- Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
- 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. Full references (including those not matched with items on IDEAS)
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