Higher Education Institutions' Costs and Efficiency: Taking the Decompostion a Further Step

Lancaster University Management School Working Paper

19 Pages Posted: 4 Nov 2005

See all articles by Geraint Johnes

Geraint Johnes

Lancaster University - Management School; Lancaster University

Jill Johnes

University of Huddersfield

Date Written: October 2005

Abstract

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.

Keywords: stochastic frontier, random parameter models, costs, higher education

JEL Classification: C14, C23, C51, D20, I20

Suggested Citation

Johnes, Geraint and Johnes, Jill, Higher Education Institutions' Costs and Efficiency: Taking the Decompostion a Further Step (October 2005). Lancaster University Management School Working Paper. Available at SSRN: https://ssrn.com/abstract=831684 or http://dx.doi.org/10.2139/ssrn.831684

Geraint Johnes (Contact Author)

Lancaster University - Management School ( email )

Bailrigg
Lancaster, LA1 4YX
United Kingdom
+44 1524 594215 (Phone)
+44 1524 594244 (Fax)

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

Jill Johnes

University of Huddersfield ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
232
Abstract Views
1,067
rank
132,756
PlumX Metrics