Submitted manuscript, 262 KB, PDF document
Research output: Working paper
Research output: Working paper
}
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 -