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Economies of scale and scope of universities – towards bigger size and specialization?

Author

Listed:
  • Tommaso Agasisti

    (Politecnico di Milano, School of Management)

  • Alice Bertoletti

    (Politecnico di Milano, School of Management)

  • Giacomo Pignataro

    (Politecnico di Milano, School of Management and University of Catania)

Abstract

This paper provides an estimation of the specific cost structure of the Italian public universities, considering their complex function of producing teaching and research. The analysis employs a quadratic cost function and an innovative dataset for the year 2016. When modelling the cost structure, we explicitly take the potential inefficiency into account, using a Stochastic Frontier Analysis. Current levels of marginal and average costs suggest that economies of scale can be still exploited. Strong diseconomies of scope between teaching and research also exist. Policies dealing with mergers and specialization are justified from the cost-efficiency point of view.

Suggested Citation

  • Tommaso Agasisti & Alice Bertoletti & Giacomo Pignataro, 2021. "Economies of scale and scope of universities – towards bigger size and specialization?," Economics Bulletin, AccessEcon, vol. 41(2), pages 405-416.
    • Handle: RePEc:ebl:ecbull:eb-20-00710
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Universities; cost functions; economies of scale; economies of scope; stochastic frontier;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • H8 - Public Economics - - Miscellaneous Issues

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