Higher education institutions’ costs and efficiency: Taking the decomposition a further step
Economics of Education Review Volume 28, Number 1 ISSN 0272-7757 Publisher: Elsevier Ltd
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.
Johnes, G. & Johnes, J. Higher education institutions’ costs and efficiency: Taking the decomposition a further step. Economics of Education Review, 28(1), 107-113. Elsevier Ltd.