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Efficiency in the provision of university teaching and research: An empirical analysis of UK universities
Author(s) -
Glass J. C.,
McKillop D. G.,
Hyndman N.
Publication year - 1995
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950100106
Subject(s) - diseconomies of scale , scope (computer science) , economies of scale , product (mathematics) , government (linguistics) , economies of scope , quality (philosophy) , scale (ratio) , economics , function (biology) , returns to scale , marginal cost , industrial organization , microeconomics , production (economics) , computer science , linguistics , philosophy , physics , geometry , mathematics , epistemology , quantum mechanics , evolutionary biology , biology , programming language
A flexible three‐output, two‐input cost function model is used to examine the cost efficiency of UK universities as producers of teaching and research ‘outputs’. Unlike previous studies, a comprehensive peer review of research quality is incorporated. Overall, product‐specific and input‐specific economies of scale, global and product‐specific economies of scope, marginal costs and cost complementarities are estimated. Overall and product‐specific scale results indicate considerable increasing returns, while the scope results generally suggest neither economies nor diseconomies. Sensitivity analysis is used to simulate the impact of current government policy, regarding the expansion of undergraduate teaching output, on these results.