Johnes, G and Johnes, J (2005) Higher education institutions' costs and efficiency: taking the decomposition a further step. Working Paper. The Department of Economics, Lancaster University.
HigherEducationInstitutions.pdf - Submitted Version
Download (477kB)
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.