Following recent changes to the funding mechanism for higher education, students in England face high tuition costs.
The taxpayer continues to subsidise this education heavily, however – both through direct contributions and through writing off unpaid loans. Government therefore retains an interest in the efficiency with which higher education is delivered.
I review the literature, and, using data for 2013-14, apply the appropriate frontier methods to model the structure of costs in this diverse sector. In doing so, I uncover information about the returns to scale and scope within the higher education sector, and identify differences in efficiency across institutions.
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