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Higher education costs and scale and scope economies

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Higher education multi-product cost functions are estimated for the public and private sectors disaggregated by research, comprehensive, baccalaureate, and associate level institutions. The output mix incorporates professional school teaching output, in addition to undergraduate and graduate teaching and research outputs. Scale and scope economies are examined by sector and institutional level, also accounting for regional differences. Ray economies are found throughout the private sector, but confined to lower level public institutions. Research economies are widespread throughout all sector levels. Economies of scope prevail among private institutions across levels, but only among comprehensive and baccalaureate public colleges.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0003684042000217643

Affiliations: Department of Economics Wright State University Dayton OH 45435 USA, Email: Tom.Sav@wright.edu

Publication date: April 1, 2004

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