Higher education institutions' costs and efficiency: Taking the decomposition a further step

Geraint Johnes, Jill Johnes

Research output: Contribution to journalArticle

64 Citations (Scopus)


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 function itself to be distinguished from inter-institutional differences in efficiency. The approach used here therefore resembles in some respects the non-parametric methods of efficiency evaluation. We report also on measures of average incremental cost of provision and on returns to scale and scope.

Original languageEnglish
Pages (from-to)107-113
Number of pages7
JournalEconomics of Education Review
Issue number1
Early online date13 May 2008
Publication statusPublished - Feb 2009
Externally publishedYes


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