Competing in the Higher Education Market: Empirical Evidence for Economies of Scale and Scope in German Higher Education Institutions
Since the late 1990s, the European higher education system has had to face deep structural changes. With the public authorities seeking to create an environment of quasi-markets in the higher education sector, the increased competition induced by recent reforms has pushed all publicly financed higher education institutions to use their resources more efficiently. Higher education institutions increasingly now aim at differentiating themselves from their competitors in terms of the range of outputs they produce. Assuming that different market positioning strategies will have different effects on the performance of higher education institutions, this paper explores the existence of economies of scale and scope in the German higher education sector. Using an input-oriented distance function approach, we estimate the economies of scale and scope and the technical efficiency for 154 German higher education institutions from 2001 through 2007. Our results suggest that comprehensive universities should indeed orientate their activities to the concept of a full-university that combines teaching and research activities across a broad range of subjects. In contrast, praxis-oriented small and medium-sized universities of applied sciences should specialise in the teaching and research activities they conduct.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alexandra M. Schmidt & Ajax R. B. Moreira & Thais C. O. Fonseca & Steven M. Helfand, 2015.
"Spatial Stochastic Frontier Models: Accounting for Unobserved Local Determinants of Inefficiency,"
0172, Instituto de Pesquisa Econômica Aplicada - IPEA.
- Alexandra Schmidt & Ajax Moreira & Steven Helfand & Thais Fonseca, 2009. "Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency," Journal of Productivity Analysis, Springer, vol. 31(2), pages 101-112, April.
- Alexandra M. Schmidt & Ajax R. B. Moreira & Thais C. O. Fonseca & Steven M. Helfand, 2006. "Spatial Stochastic Frontier Models: accounting for unobserved local determinants of inefficiency," Discussion Papers 1220, Instituto de Pesquisa Econômica Aplicada - IPEA.
- Johnes, Geraint, 1997. "Costs and Industrial Structure in Contemporary British Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 727-37, May.
- Philippe K Widmer & Peter Zweifel & Mehdi Farsi, 2010.
"Accounting For Heterogeneity In The Measurement of Hospital Performance,"
Economics Discussion / Working Papers
10-21, The University of Western Australia, Department of Economics.
- Philippe K. Widmer & Peter Zweifel & Mehdi Farsi, 2011. "Accounting for heterogeneity in the measurement of hospital performance," ECON - Working Papers 052, Department of Economics - University of Zurich.
- 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.
- Tommaso Agasisti & Geraint Johnes, 2010. "Heterogeneity and the evaluation of efficiency: the case of Italian universities," Applied Economics, Taylor & Francis Journals, vol. 42(11), pages 1365-1375.
- Gholamreza Hajargasht & Tim Coelli & D. S. Prasada Rao, 2006.
"A Dual Measure of Economies of Scope,"
CEPA Working Papers Series
WP032006, School of Economics, University of Queensland, Australia.
- Broeck, Julien Van den & Steel, Mark F.J. & Osiewalski, Jacek & Koop, Gary, 1992.
"Stochastic frontier models: a bayesian perspective,"
UC3M Working papers. Economics
2823, Universidad Carlos III de Madrid. Departamento de Economía.
- van den Broeck, Julien & Koop, Gary & Osiewalski, Jacek & Steel, Mark F. J., 1994. "Stochastic frontier models : A Bayesian perspective," Journal of Econometrics, Elsevier, vol. 61(2), pages 273-303, April.
- Schubert, Torben, 2009. "Empirical observations on New Public Management to increase efficiency in public research--Boon or bane?," Research Policy, Elsevier, vol. 38(8), pages 1225-1234, October.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:lue:wpaper:223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner)
If references are entirely missing, you can add them using this form.