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ERIC Number: EJ959141
Record Type: Journal
Publication Date: 2012
Pages: 17
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-0964-5292
EISSN: N/A
Stochastic Estimation of Cost Frontier: Evidence from Bangladesh
Mamun, Shamsul Arifeen Khan
Education Economics, v20 n2 p211-227 2012
In the literature of higher education cost function study, enough knowledge is created in the area of economy scale in the context of developed countries but the knowledge of input demand is lacking. On the other hand, empirical knowledge in the context of developing countries is very meagre. The paper fills up the knowledge gap, estimating a quadratic cost frontier for the public universities in Bangladesh and thereby analysing economies of scale, economies of scope and input demand choice. The study is based on the panel data for Year 2002-2007. Findings show that there are economies of scale up to 350% of the mean output level in the public university, and the critical value of cost-minimizing demand for factor input labour is 48%. The paper shows that an economy of scale has relative advantage over cost-minimizing input choice in minimizing average production cost in the public university. (Contains 15 notes and 9 tables.)
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site: http://www.tandf.co.uk/journals
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Bangladesh
Grant or Contract Numbers: N/A