TY - UNPB

T1 - Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis

AU - Agasisti, T

AU - Johnes, G

PY - 2009

Y1 - 2009

N2 - We estimate a variety of models to evaluate costs in US higher education institutions. A novel feature of our approach involves the estimation of latent class and random parameter stochastic frontier models of the multiproduct cost function. This allows us fully to accommodate both the heterogeneity of institutions and the presence of technical inefficiencies. Our findings suggest that global economies could be achieved by effecting a reduction in the number of institutions providing undergraduate instruction, while increasing the number of institutions engaged in postgraduate activity.

AB - We estimate a variety of models to evaluate costs in US higher education institutions. A novel feature of our approach involves the estimation of latent class and random parameter stochastic frontier models of the multiproduct cost function. This allows us fully to accommodate both the heterogeneity of institutions and the presence of technical inefficiencies. Our findings suggest that global economies could be achieved by effecting a reduction in the number of institutions providing undergraduate instruction, while increasing the number of institutions engaged in postgraduate activity.

KW - costs

KW - efficiency

KW - stochastic frontier

KW - latent class

KW - random parameter.

M3 - Working paper

T3 - Economics Working Paper Series

BT - Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis

PB - The Department of Economics

CY - Lancaster University

ER -