The current study examines costs, measured by educational and general (E&G) spending, and cost efficiency at 252 public master's institutions in the United States over a nine-year (2004-2012) period. We use a multi-product quadratic cost function and results from a random-effects model with a first-order autoregressive (AR1) disturbance term…

A multiproduct cost function is estimated for English higher education institutions using a panel of data from recent years. The panel approach allows estimation by means of a random parameter stochastic frontier model which provides considerable new insights in that it allows the impact on costs of inter-institutional differences in the cost…

During the 2008-2009 academic year, there were nearly 1.8 million students enrolled at more than 2,800 for-profit institutions of higher learning in the United States. Students in for-profit colleges and universities accounted for over 9% of all students enrolled in postsecondary education. The numbers have continued to grow, and today (2010) the…

In theory, not-for-profit organizations will be characterized by higher production costs per unit of output than for-profit producers of otherwise-identical goods/services, since profit maximization implies cost minimization per unit of output; breaking even does not imply cost minimization and, indeed, may imply inflated costs. We explore the…

To help administrators improve school efficiency in a time of financial constraints, this document reviews research on school productivity, points out possible improvements suggested by the research, and discusses several problems in measuring school costs and effectiveness. The author first explains the analytical concepts of school productivity,…