Do Liberal Arts Colleges Exhibit Economies of Scale and Scope?

Rajindar Koshal and Manjulika Koshal

Education Economics, 2000, vol. 8, issue 3, 209-220

Abstract: This study empirically estimates a multiple-product fixed total cost function and output relationship for liberal arts colleges in the United States. Statistical results based on data for 295 private liberal arts colleges suggest that there are both economies of scale and economies of scope in higher education. Furthermore, product-specific economies of scope do exist for all output levels and activities. Research activity at liberal arts colleges is not cost effective.

Date: 2000
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DOI: 10.1080/096452900750046715

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