In this paper, a conceptual approach for an econometric analysis of cost situation in German university education is introduced and applied to the economic departments for a first empirical test. The concept is based on a „Flexible Fixed Cost Quadratic Function“ for multi-product-enterprises. To analyse the costs of university education, the function is specified in two variants. In a first version, it is formulated as a one-output-function for the sole output „education“. In a second version, the function is specified as a two-output-function for the simultaneously made output of „education“ and „research“. Subsequently, on the basis of the German „Hochschulfinanzstatistik“, a conception for calculating the relevant cost figures for current total costs and current costs of education is developed. Using the cost figures calculated, both versions of the FFCQ-function are econometrically estimated and the results are discussed from a production theoretical point of view.
Kraus, Margit (2004), Schätzung von Hochschulkostenfunktionen für die bundesdeutsche Hochschulausbildung: Ein konzeptioneller Ansatz im empirischen Test, ZEW Discussion Paper No. 04-36, Mannheim. Download