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The Determinants Of Costs And Efficiencies Where Producers Are Heterogeneous: The Case Of Spanish Universities

Author

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  • Geraint Johnes

    (Lancaster University Management School)

  • Manuel Salas-Velasco

    (Universidad de Granada)

Abstract

A multi-product cost function is evaluated for the universities of Spain, using a random parameters stochastic frontier model. This allows estimates of systematic cost differences to be obtained alongside estimates of universities' efficiency. In addition, we evaluate average incremental costs of key university output, and provide measures of economies of scale and scope.

Suggested Citation

  • Geraint Johnes & Manuel Salas-Velasco, 2007. "The Determinants Of Costs And Efficiencies Where Producers Are Heterogeneous: The Case Of Spanish Universities," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-07d20004
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    References listed on IDEAS

    as
    1. Efthymios G. Tsionas, 2002. "Stochastic frontier models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(2), pages 127-147.
    2. Johnes, Geraint, 1998. "The Costs of Multi-product Organizations and the Heuristic Evaluation of Industrial Structure," Socio-Economic Planning Sciences, Elsevier, vol. 32(3), pages 199-209, September.
    3. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    4. Geraint Johnes, 1996. "Multi-product cost functions and the funding of tuition in UK universities," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 557-561.
    5. Izadi, Hooshang & Johnes, Geraint & Oskrochi, Reza & Crouchley, Robert, 2002. "Stochastic frontier estimation of a CES cost function: the case of higher education in Britain," Economics of Education Review, Elsevier, vol. 21(1), pages 63-71, February.
    6. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    7. Cohn, Elchanan & Rhine, Sherrie L W & Santos, Maria C, 1989. "Institutions of Higher Education as Multi-product Firms: Economies of Scale and Scope," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 284-290, May.
    8. Johnes, Geraint, 1997. "Costs and Industrial Structure in Contemporary British Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 727-737, May.
    9. Philip Stevens, 2001. "The determinants of economic efficiency in English and Welsh universities," National Institute of Economic and Social Research (NIESR) Discussion Papers 185, National Institute of Economic and Social Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Joan Crespo & Jesús Peiró-Palomino & Emili Tortosa-Ausina, 2020. "Does university performance have an economic payoff for their home regions? Evidence for the Spanish provinces," Working Papers 2020/20, Economics Department, Universitat Jaume I, Castellón (Spain).
    2. Alice Bertoletti & Geraint Johnes, 2021. "Efficiency in university-industry collaboration: an analysis of UK higher education institutions," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7679-7714, September.
    3. Yaisawarng, Suthathip & Ng, Ying Chu, 2014. "The impact of higher education reform on research performance of Chinese universities," China Economic Review, Elsevier, vol. 31(C), pages 94-105.
    4. Mehdi Rhaiem, 2017. "Measurement and determinants of academic research efficiency: a systematic review of the evidence," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 581-615, February.
    5. Bonaccorsi, Andrea & Belingheri, Paola & Secondi, Luca, 2021. "The research productivity of universities. A multilevel and multidisciplinary analysis on European institutions," Journal of Informetrics, Elsevier, vol. 15(2).
    6. T Agasisti & G Johnes, 2009. "Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis," Working Papers 599308, Lancaster University Management School, Economics Department.
    7. Jiro Nemoto & Noriko Furumatsu, 2014. "Scale and scope economies of Japanese private universities revisited with an input distance function approach," Journal of Productivity Analysis, Springer, vol. 41(2), pages 213-226, April.
    8. Liang-Cheng Zhang & Andrew C. Worthington, 2018. "Explaining Estimated Economies of Scale and Scope in Higher Education: A Meta-Regression Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(2), pages 156-173, March.
    9. repec:lan:wpaper:4358 is not listed on IDEAS
    10. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    11. repec:lan:wpaper:4792 is not listed on IDEAS
    12. Néstor Duch-Brown & Montserrat Vilalta, 2010. "Can better governance increase university efficiency?," Working Papers 2010/52, Institut d'Economia de Barcelona (IEB).
    13. repec:lan:wpaper:4487 is not listed on IDEAS
    14. Zaira García-Tórtola & David Conesa & Joan Crespo & Emili Tortosa-Ausina, 2024. "Unlocking University Efficiency: A Bayesian Stochastic Frontier Analysis," Working Papers 2024/05, Economics Department, Universitat Jaume I, Castellón (Spain).
    15. Manuel Salas‐Velasco, 2020. "Assessing the performance of Spanish secondary education institutions: Distinguishing between transient and persistent inefficiency, separated from heterogeneity," Manchester School, University of Manchester, vol. 88(4), pages 531-555, July.
    16. Delimiro Visbal-Cadavid & Mónica Martínez-Gómez & Francisco Guijarro, 2017. "Assessing the Efficiency of Public Universities through DEA. A Case Study," Sustainability, MDPI, vol. 9(8), pages 1-19, August.

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    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • I2 - Health, Education, and Welfare - - Education

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