Cost functions are estimated, using random effects and stochastic frontier methods, for English higher education institutions. The article advances on existing literature by employing finer disaggregation by subject, institution type and location, and by introducing consideration of quality effects. Estimates are provided of average incremental costs attached to each output type, and of returns to scale and scope. Implications for the policy of expansion of higher education are discussed.
Bibliographical noteThis is an Accepted Manuscript of an article published by Taylor & Francis Group in Studies in Higher Education on 10 Oct 2008, available online at: http://www.tandfonline.com/10.1080/03075070802372901
- cost functions
- higher education institutions
- disaggregation by subject
- quality effects
- average incremental costs