ERIC Number: ED422813
Record Type: Non-Journal
Publication Date: 1998-May
Reference Count: N/A
The Value of Cost Functions for Policymaking and Institutional Research. AIR 1998 Annual Forum Paper.
Toutkoushian, Robert K.
Multiple regression analysis was used to examine data from the 1994-95 Integrated Postsecondary Education Data System survey to determine the characteristics that influence institutional costs and, in the process, to identify policies that could reduce costs. The data universe consisted of 828 public and private 4-year institutions that did not have a medical school or hospital, enrolled both undergraduate and graduate students, and ranged in size from small liberal arts colleges to major research universities. The study focused on how factors such as enrollment level, institution location, research intensity, and faculty characteristics influence institutional costs. These cost functions were also used to estimate the marginal cost of undergraduate instruction and to compare actual and predicted expenditures per student across institutions. It was found that both total and average expenditures were significantly lower at public institutions than at private institutions. While economies of scale were noted, the evidence varied across types of institutions; expenditures per student appeared to be minimized at about 23,000 students. The paper includes an introduction, a literature review, a summary of data and methodology, an analysis of the results, and a summary section that reviews some of the policy implications. Five data tables are appended. (Contains 24 references.) (CH)
Descriptors: Correlation, Costs, Educational Administration, Educational Finance, Expenditure per Student, Expenditures, Higher Education, Institutional Characteristics, Peer Institutions, Policy Formation, Predictive Measurement, Private Colleges, Regression (Statistics), School Demography, State Universities
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A