Rights statement: The final, definitive version of this article has been published in the Journal, Public Policy and Administration, 32 (4), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Public Policy and Administration page: http://journals.sagepub.com/home/ppa on SAGE Journals Online: http://journals.sagepub.com/
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Revenue efficiency in higher education institutions under imperfect competition
AU - Johnes, Geraint
AU - Ruggiero, John
N1 - The final, definitive version of this article has been published in the Journal, Public Policy and Administration, 32 (4), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Public Policy and Administration page: http://journals.sagepub.com/home/ppa on SAGE Journals Online: http://journals.sagepub.com/
PY - 2017/10/1
Y1 - 2017/10/1
N2 - A number of studies have considered the evaluation of efficiency in higher education institutions. In this paper we focus on the issue of revenue efficiency, in particular ascertaining the extent to which, given output prices, producers choose the revenue maximising vector of outputs. Following Johnson and Ruggiero (2011), we then relax the price taking assumption to consider the case in which the market for some outputs is characterised by monopolistic competition. We evaluate efficiencies for English institutions of higher education for the academic year 2012-13 and find considerable variation across institutions in revenue efficiency. The relaxation of the price taking assumption leads to relatively small changes, in either direction, to the estimated revenue efficiency scores. A number of issues surrounding the modelling process are raised and discussed, including the determination of the demand function for each type of output and the selection of inputs and outputs to be used in the model.
AB - A number of studies have considered the evaluation of efficiency in higher education institutions. In this paper we focus on the issue of revenue efficiency, in particular ascertaining the extent to which, given output prices, producers choose the revenue maximising vector of outputs. Following Johnson and Ruggiero (2011), we then relax the price taking assumption to consider the case in which the market for some outputs is characterised by monopolistic competition. We evaluate efficiencies for English institutions of higher education for the academic year 2012-13 and find considerable variation across institutions in revenue efficiency. The relaxation of the price taking assumption leads to relatively small changes, in either direction, to the estimated revenue efficiency scores. A number of issues surrounding the modelling process are raised and discussed, including the determination of the demand function for each type of output and the selection of inputs and outputs to be used in the model.
KW - efficiency
KW - revenue
KW - monopolistic competition
KW - higher education
U2 - 10.1177/0952076716652935
DO - 10.1177/0952076716652935
M3 - Journal article
VL - 32
SP - 282
EP - 295
JO - Public Policy and Administration
JF - Public Policy and Administration
SN - 0952-0767
IS - 4
ER -