A multiproduct cost function is estimated for German higher education institutions using a panel of data from recent years. The use of panel data allows a random parameter stochastic frontier model to be estimated, and this delivers new insights on the extent to which differences in costs...

A random parameters stochastic frontier model is applied to Italian data in order to evaluate the cost function and efficiency of higher education institutions. The method yields useful information about inter-institutional variation in cost structure and technical efficiency. Returns to scale...