UNIVERSITY COST STRUCTURE IN TAIWAN |
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| Authors: | TSU‐TAN FU CLIFF J HUANG FLORA F TIEN |
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| Institution: | 1. Fu: Professor, Institute of Economics, Academia Sinica, and Department of Agricultural Economics, National Taiwan University, Taipei, 11529, Taiwan. Phone 886‐2‐2782‐2791, Fax 886‐2‐2783‐7511, E‐mail: tfu@ econ.sinica.edu.tw;2. The authors thank Andrew F. Daughety, Malcolm Getz, and John J. Siegfried of Vanderbilt University for their helpful discussion and comments. The authors also wish to thank an anonymous referee for helpful comments. The usual caveat holds. This research was supported by grants from the National Science Council and Ministry of Education of Taiwan under the Program for Promoting Academic Excellence in Universities.;3. Huang: Professor, Department of Economics, Vanderbilt University, Nashville, TN 37235. Phone 615‐356‐5508, Fax 615‐343‐8495, E‐mail: cliff.huang@vanderbilt.edu;4. Tien: Associate Professor, Center for Teacher Education, National Taiwan University, Taipei, 10617, Taiwan. Phone 886‐2‐3366‐5709, Fax 886‐2‐2362‐1820, E‐mail: floratien@ntu.edu.tw |
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| Abstract: | In this paper we demonstrate that the measures of scale and scope economies may be elusive if failing to consider quality variation among universities and endogeneity of congestion in students’ learning and living facility utilization. Empirical results show that the private and highly congested universities have consistently underestimated the cost of congestion, which results in an upward bias in estimating the economies of scale and scope. Taking into account the quality of outputs in enrollments and the congestion factor, we find that the private and the more congested universities have much less scale and scope economies than the public and the less congested institutions. (JEL I21, H52, 9120) |
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