Persistent Cost Efficiency at Public Community Colleges in the US
A Stochastic Frontier Analysis
Bibliographic Data
| ID | 21751860 |
|---|---|
| Authors | Marvin A Titus (0000-0003-1225-9944, University of Maryland, College Park, corresponding author), Adriana C Vamosiu (0000-0001-8339-1163, University of San Diego), Adriana Vamosiu, Shannon Hayes Buenaflor (0000-0002-4023-8799, University of Maryland, College Park), Casey Maliszewski Lukszo (Northern Virginia Community College) |
| Year | 2021 |
| Volume | 62 |
| Issue | 8 |
| Pages | 1168-1197 |
| Publication date | 2021-12-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Research in Higher Education (JOURNAL) |
| Journal identifiers | ISSN: 1573-188X • E-ISSN: 0361-0365 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11162-021-09634-y |
| PMID | 33850342 |
| OpenAlex | W3153644973 |
| Language | EN |
| Citations received | 1 |
| References cited | 40 |
This study utilizes an extensive panel data set spanning 15 years (2004-2018) and 752 public community colleges to investigate operating costs and persistent cost efficiency at public community colleges in the United States. We employ a generalized true random effects (GTRE) regression model that takes into account spatial correlation of costs among community colleges, to estimate cost efficiency via stochastic frontier analysis (SFA). The results reveal a positive relationship between operating costs and associate degrees and certificates as well both human (part- and full-time faculty) and financial resources (local, state and federal funding and tuition revenue), controlling for other variables. Furthermore, with an average persistent (long-term) efficiency of 87%, few institutions are relatively cost inefficient. Moving forward, campus leaders and policy makers alike may consider yearly data and efficiency calculations to develop strategic plans and funding alternatives. With 40 percent of first-time students transferring at least once within six years and over half of those students transfer from a community college, future research may study cost efficiency of community colleges while accounting for student transfers as an output.
Actuarial science · Business · Cost efficiency · Econometrics · Economic growth · Economics · Frontier · Higher education · Microeconomics · Operating expense · Panel data · Political science · Public economics · Revenue · Stochastic frontier analysis · Computer Science · Efficiency Analysis Using DEA · Higher Education Research Studies · Human Resources and Workforce · Finance
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On the estimation of technical inefficiency in the stochastic frontier production function model
The Labor-Market Returns to Community College Degrees, Diplomas, and Certificates
Fixed and Random Effects in Stochastic Frontier Models
A model for technical inefficiency effects in a stochastic frontier production function for panel data
Formulation and estimation of stochastic frontier production function models
Production Frontiers and Panel Data
Institutions of Higher Education as Multi-Product Firms
The Changing Landscape of Tuition and Enrollment in American Public Higher Education
The measurement and sources of technical inefficiency in the Indonesian weaving industry
Performance-Based Funding for Community Colleges
The Labor Market Returns to a Community College Education for Noncompleting Students
The Costs of Higher Education
Efficiency, costs, rankings and heterogeneity
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |