Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford Review of Economic Policy following peer review. The definitive publisher-authenticated version Geraint Johnes and Jill Johnes Costs, efficiency, and economies of scale and scope in the English higher education sector Oxf Rev Econ Policy (2016) 32 (4): 596-614 doi:10.1093/oxrep/grw023 is available online at: http://oxrep.oxfordjournals.org/content/32/4/596
Accepted author manuscript, 292 KB, PDF document
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Costs, efficiency, and economies of scale and scope in the English higher education sector
AU - Johnes, Geraint
AU - Johnes, Jill
N1 - This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford Review of Economic Policy following peer review. The definitive publisher-authenticated version Geraint Johnes and Jill Johnes Costs, efficiency, and economies of scale and scope in the English higher education sector Oxf Rev Econ Policy (2016) 32 (4): 596-614 doi:10.1093/oxrep/grw023 is available online at: http://oxrep.oxfordjournals.org/content/32/4/596
PY - 2016/12/21
Y1 - 2016/12/21
N2 - An understanding of the production and cost technology of higher education institutionsis of considerable policy interest as it motivates the structure of the sector—how large universitiesshould be, and what mix of outputs they should produce. We review the literature and, using data for English institutions in 2013–14, apply appropriate frontier methods to model the structure of costs in this diverse sector. In doing so, we uncover information about the returns to scale and scope within the higher education sector: in particular, the class of institutions comprising larger research-intensive universities and small specialist institutions could benefit from further concentrating postgraduate and research activity. We find that the universities comprising the English higher education sector are largely efficient (measured relative to observed practices) and that there is little scope for gains in technical efficiency from allocating resources on the basis of efficiency scores.
AB - An understanding of the production and cost technology of higher education institutionsis of considerable policy interest as it motivates the structure of the sector—how large universitiesshould be, and what mix of outputs they should produce. We review the literature and, using data for English institutions in 2013–14, apply appropriate frontier methods to model the structure of costs in this diverse sector. In doing so, we uncover information about the returns to scale and scope within the higher education sector: in particular, the class of institutions comprising larger research-intensive universities and small specialist institutions could benefit from further concentrating postgraduate and research activity. We find that the universities comprising the English higher education sector are largely efficient (measured relative to observed practices) and that there is little scope for gains in technical efficiency from allocating resources on the basis of efficiency scores.
KW - costs
KW - efficiency
KW - higher education
U2 - 10.1093/oxrep/grw023
DO - 10.1093/oxrep/grw023
M3 - Journal article
VL - 32
SP - 596
EP - 614
JO - Oxford Review of Economic Policy
JF - Oxford Review of Economic Policy
SN - 0266-903X
IS - 4
ER -