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Economies of scale and scope in Flemish secondary schools

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  • Mike Smet
  • Walter Nonneman

Abstract

This study estimates a multiproduct translog cost function for the entire population of 1011 Flemish secondary schools in order to determine the degree of ray and product specific (dis)economies of scale as well as the degree of (dis)economies of scope. Three types of schools and seven major study fields can be distinguished. Student loads in these study fields are used as outputs produced by the schools. Evidence is found for ray economies of scale for the three types of schools, even at output levels of 300% of the actual means. Although the cost elasticities of six out of seven outputs are close to zero, most of the values indicating the degree of product specific economies of scale are negative (suggesting diseconomies of scale). However, this can be explained by the considerable scope effects which are incorporated in the definition of the product specific economies of scale.

Suggested Citation

  • Mike Smet & Walter Nonneman, 1998. "Economies of scale and scope in Flemish secondary schools," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1251-1258.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1251-1258
    DOI: 10.1080/000368498325138
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    Cited by:

    1. Rajiv Banker & Hsihui Chang & Ehsan Feroz, 2014. "Performance measurement in nonprofit governance: an empirical study of the Minnesota independent school districts," Annals of Operations Research, Springer, vol. 221(1), pages 47-71, October.
    2. Stijn Kelchtermans, 2008. "Regulation of Program Supply in Higher Education: Lessons from a Funding System Reform in Flanders," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 204-228, June.
    3. Abdullahi Abdulkadri & Michael Langemeier & Allen Featherstone, 2006. "Estimating economies of scope and scale under price risk and risk aversion," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 191-201.
    4. Banker, Rajiv D. & Chang, Hsihui & Cunningham, Reba, 2003. "The public accounting industry production function," Journal of Accounting and Economics, Elsevier, vol. 35(2), pages 255-281, June.
    5. Brennan, Shae & Haelermans, Carla & Ruggiero, John, 2014. "Nonparametric estimation of education productivity incorporating nondiscretionary inputs with an application to Dutch schools," European Journal of Operational Research, Elsevier, vol. 234(3), pages 809-818.
    6. NONNEMAN, Walter, 2012. "School achievement and failure of immigrant children in Flanders," Working Papers 2012008, University of Antwerp, Faculty of Business and Economics.
    7. Smet, Mike, 2001. "Determining the optimal size of study fields in Flemish secondary education," Economics of Education Review, Elsevier, vol. 20(5), pages 443-457, October.

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