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New public management in U.S. higher education: is privatization associated with lower costs?

Kevin R. McClure, Adriana C. Vamosiu, Marvin A. Titus and Steffon M. Gray

Public Management Review, 2024, vol. 26, issue 7, 1915-1940

Abstract: This study investigates the application of the three-dimensional New Public Management (NPM) framework to the public higher education setting to examine the relationship between one of the NPM dimensions, privatization, and cost management at 159 public research institutions in the United States between 2005 and 2015. We develop four statistical measures to quantify privatization and find privatization is linked to lower costs as institutions increase the share of revenue from auxiliary enterprises and tuition and fees, but higher costs when increasing out-of-state first-year enrolment. This raises management questions about public higher education cost efficiency, access and DEI for in-state students.

Date: 2024
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DOI: 10.1080/14719037.2023.2174588

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