Olivares, Maria and Wetzel, Heike (2014). Competing in the Higher Education Market: Empirical Evidence for Economies of Scale and Scope in German Higher Education Institutions. CESifo Econ. Stud., 60 (4). S. 653 - 681. OXFORD: OXFORD UNIV PRESS. ISSN 1612-7501

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Abstract

Since the late 1990s, the European higher education system has had to face deep structural changes. With the public authorities seeking to create an environment of quasi-markets in the higher education sector, the increased competition induced by recent reforms has pushed all publicly financed higher education institutions (HEIs) to use their resources more efficiently. HEIs increasingly now aim at differentiating themselves from their competitors in terms of the range of outputs they produce. Assuming that different market positioning strategies will have different effects on the performance of HEIs, this article explores the existence of economies of scale and scope in the German higher education sector. Using an input-oriented distance function approach, we estimate the economies of scale and scope and the technical efficiency for 154 German HEIs from 2001 through 2007. Our results suggest that comprehensive universities should indeed orientate their activities to the concept of a full-university that combines teaching and research activities across a broad range of subjects. In contrast, praxis-oriented small and medium-sized universities of applied sciences should specialize in the teaching and research activities they conduct.

Item Type: Journal Article
Creators:
CreatorsEmailORCIDORCID Put Code
Olivares, MariaUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Wetzel, HeikeUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
URN: urn:nbn:de:hbz:38-421722
DOI: 10.1093/cesifo/ifu001
Journal or Publication Title: CESifo Econ. Stud.
Volume: 60
Number: 4
Page Range: S. 653 - 681
Date: 2014
Publisher: OXFORD UNIV PRESS
Place of Publication: OXFORD
ISSN: 1612-7501
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
STOCHASTIC FRONTIER MODELS; UNIVERSITIES; EFFICIENCY; PRODUCTIVITY; INEFFICIENCYMultiple languages
EconomicsMultiple languages
URI: http://kups.ub.uni-koeln.de/id/eprint/42172

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