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New public management in U.S. higher education: is privatization associated with lower costs?

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  • Kevin R. McClure
  • Adriana C. Vamosiu
  • Marvin A. Titus
  • Steffon M. Gray

Abstract

This study investigates the application of the three-dimensional New Public Management (NPM) framework to the public higher education setting to examine the relationship between one of the NPM dimensions, privatization, and cost management at 159 public research institutions in the United States between 2005 and 2015. We develop four statistical measures to quantify privatization and find privatization is linked to lower costs as institutions increase the share of revenue from auxiliary enterprises and tuition and fees, but higher costs when increasing out-of-state first-year enrolment. This raises management questions about public higher education cost efficiency, access and DEI for in-state students.

Suggested Citation

  • Kevin R. McClure & Adriana C. Vamosiu & Marvin A. Titus & Steffon M. Gray, 2024. "New public management in U.S. higher education: is privatization associated with lower costs?," Public Management Review, Taylor & Francis Journals, vol. 26(7), pages 1915-1940, July.
    • Handle: RePEc:taf:rpxmxx:v:26:y:2024:i:7:p:1915-1940
    DOI: 10.1080/14719037.2023.2174588
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