澳大利亚高等教育的成本函数【外文翻译】.doc

1、本科毕业论文（设计）外文翻译原文ACOSTFUNCTIONFORHIGHEREDUCATIONINAUSTRALIAEXTRACT1INTRODUCTIONTHISSTUDYESTIMATESACOSTFUNCTIONFORHIGHEREDUCATIONINAUSTRALIANUNIVERSITIESTHEESTIMATEDFUNCTIONISUSEDTOEXAMINETHECOSTOFPROVIDINGHIGHEREDUCATIONTOOVERSEASSTUDENTSINTHEHIGHEREDUCATIONSECTOR,PRODUCTIONFUNCTIONSAREUSEFULFOREVALU

2、ATINGTHESTRUCTUREOFTHEINDUSTRYANDCANSERVEASGUIDESFORINDIVIDUALINSTITUTIONSONPOLICIESAFFECTINGTHEIRSIZEANDSCOPEMOREOVER,INVIEWOFTHERELAXATIONOFPROVISIONSUNDERWHICHUNIVERSITIESCANPROVIDEHIGHEREDUCATIONTOFULLFEEPAYINGDOMESTICSTUDENTS,INFORMATIONFROMCOSTFUNCTIONSCANASSISTINSTITUTIONSTODEVELOPAPPROPRIATE

3、PRICINGSTRATEGIESCOSTFUNCTIONSALSOPROVIDEANOPPORTUNITYTOEVALUATETHECOSTOFPROVIDINGHIGHEREDUCATIONTOOVERSEASSTUDENTSHIGHEREDUCATIONCOSTSFORANINDIVIDUALUNIVERSITYCANBEESTABLISHEDFROMADETAILEDACCOUNTINGEXERCISEINWHICHTHEEXPLICITANDIMPLICITCOSTSALLOCATEDTOCOURSESANDLEVELSARECOLLECTEDHOWEVER,INOBTAININGT

4、HECOSTSOFOVERSEASSTUDENTS,THEREISSTILLBEANEEDFORACOSTFUNCTIONBECAUSEITISNECESSARYTOEXAMINEWHATTHECOSTSWOULDBEUNDERALTERNATIVESTUDENTNUMBERS,THATIS,WITHANDWITHOUTOVERSEASSTUDENTSSOMEIDEAOFTHEVARIATIONINCOSTSWITHDIFFERENTNUMBERSCANBEOBTAINEDBYCOMPARINGUNIVERSITIESATTHESAMEDATEBUTWITHDIFFERENTSTUDENTPR

5、OFILESHENCETHEUSEOFCOSTFUNCTIONSPROVIDESAMETHODFORMEASURINGTHENETBENEFITSORCOSTSOFTHEPROVIDINGEDUCATIONTOOVERSEASSTUDENTSTHEPAPERISORGANISEDASFOLLOWSSECTION2REVIEWSSOMEOFTHEPREVIOUSWORKDONEONTHEAUSTRALIANHIGHEREDUCATIONSECTORANDDISCUSSESSOMERELEVANTISSUESSECTION3PRESENTSTHEBASICCOSTFUNCTIONMODEL,DES

6、CRIBESTHEDATAANDPRESENTSEMPIRICALRESULTSSECTION4PRESENTSRESULTSFROMTHEAPPLICATIONOFTHECOSTFUNCTION,INCLUDINGTHECOSTSPREDICTIONSFORTHEPROVISIONOFHIGHEREDUCATIONFOROVERSEASSTUDENTSSECTION5DRAWSPOLICYIMPLICATIONSANDCONCLUSIONS2PREVIOUSWORKANDSOMEISSUESTHROSBY1986ESTIMATEDTHECOSTOFPROVIDINGHIGHEREDUCATI

7、ONUSINGDATAFROM18AUSTRALIANUNIVERSITIESFORTHEPERIOD1978TO1982THISWASFOLLOWEDBYLLOYDETAL1993ANDLLOYD1994,WHICHDEFINEDTHECONDITIONSUNDERWHICHTHEFUNCTIONALFORMOFTHECOSTFUNCTIONALLOWSECONOMIESOFSCALEANDSCOPEINTHEPRODUCTIONOFMULTIPLEOUTPUTS,THATISRESEARCHANDTEACHINGINVARIOUSDISCIPLINESANDATDIFFERENTLEVEL

8、SESTIMATESFROMTHESESTUDIESWEREUSEDTOANALYSETHEIMPACTOFTHEAMALGAMATIONSTHATFOLLOWEDTHE1987REFORMSINPARTICULAR,THEESTIMATEDEQUATIONWASUSEDTOEVALUATETHELIKELYCOSTSAVINGSARISINGFROMTHEAMALGAMATIONOFTWOORMOREINSTITUTIONSTHEMOSTRECENTCOSTFUNCTIONESTIMATEFORAUSTRALIAISREPORTEDINTHROSBYANDHEATON1995USING199

9、1CROSSSECTIONALDATAON42INSTITUTIONS,THROSBYANDHEATONANALYSEDTHERELATIONSHIPBETWEENTHEOPERATINGCOSTSOFINSTITUTIONSANDTHENUMBEROFSTUDENTSIN10BROADSUBJECTAREASANDTHREELEVELSOFSTUDIES,USINGAQUADRATICFUNCTIONOFTHESTUDENTNUMBERSIMPLYINGCONSTANTMARGINALCOSTSTHEIRCOSTFUNCTIONWASUSEDBYBAKER,CREEDYANDJOHNSON1

10、996TOEVALUATETHECOSTOFOVERSEASSTUDENTSANUMBEROFISSUESARISEINDERIVINGANDUSINGSUCHAMODELFIRST,PREVIOUSSTUDIESFAILEDTOACCOUNTFORUNOBSERVEDDIFFERENCESBETWEENUNIVERSITIESEACHINSTITUTIONHASAPARTICULARSTRUCTURETHATMAYMAKETHEPROVISIONOFPARTICULARCOURSESMORECOSTEFFICIENTINONEUNIVERSITYTHANINOTHERSINADDITION,

11、THEEXPLANATORYVARIABLESCHOSENMAYNOTADEQUATELYREPRESENTTHECHARACTERISTICSOFPARTICULARINSTITUTIONSFOREXAMPLE,THEREMAYBEVARIATIONOFQUALITYANDTHEPROPORTIONOFRESOURCESDEVOTEDTORESEARCHTHEIMPLICITASSUMPTIONTHATQUALITYOFTEACHINGISINDEPENDENTOFVARIATIONSINSTUDENTNUMBERSISALSOMADESECOND,THEREAREAGGREGATIONPR

12、OBLEMSASSOCIATEDWITHTHEACCURATESPECIFICATIONOFTHEVARIABLESTHESEOCCURBECAUSETHECHOICEOFDISCIPLINEORCOURSELEVELCATEGORIESMASKSLARGEDIFFERENCESBETWEENCOMPONENTSOFTHEAGGREGATEDDISCIPLINEFOREXAMPLE,HEALTHINCLUDESTHETRAININGOFBOTHHIGHCOSTDOCTORSANDRELATIVELYLOWCOSTNURSESATTHEAGGREGATELEVELTHEYMAYBECOMBINE

13、DINTOASINGLECOMPOSITEGROUP,BUTINDIVIDUALUNIVERSITIESMAYSPECIALISEINEITHERTHEHIGHCOSTORTHELOWCOSTPRODUCTACCORDINGLY,THEIRTOTALCOSTSWILLBEUNDEROROVERESTIMATEDBYTHEUSEOFANAVERAGEDSETOFPARAMETERSDEFINEDOVERTHEUNIVERSITIESASAWHOLETHIRD,THECONVENTIONALCOSTMINIMISATIONASSUMPTIONDOESNOTAPPLYNATURALLYTOTHEHI

14、GHEREDUCATIONSECTORWHENGOVERNMENTTOALARGEEXTENTDETERMINESBOTHTHEFUNDINGANDTHEOUTPUTINFACT,MANYUNIVERSITIESMAYUSETHESAMEMODELASUSEDBYTHEGOVERNMENTTODETERMINETHEFUNDINGOFDOMESTICSTUDENTSTHERELATIVEFUNDINGMODELFORSETTINGFEESFOROVERSEASSTUDENTSINGENERAL,THEFIRSTANDSECONDPROBLEMSAREFEATURESOFTHEAVAILABIL

15、ITYOFAPPROPRIATELYDISAGGREGATEDDATAANDMODELSPECIFICATIONPRELIMINARYINVESTIGATIONHASREVEALEDTHATWHILEFINDINGANANSWERTOTHESECONDPROBLEMISDIFFICULT,AMORERIGOROUSSTUDYCANTACKLETHEFIRSTTHISTHIRDPROBLEMISINTRINSICTOTHECOSTFUNCTIONMETHODOLOGYTHECOSTFUNCTIONAPPROACHISNONETHELESSAUSEFULTOOLFORHIGHEREDUCATION

16、POLICYDEVELOPMENTUNIVERSITIESCANCOMPARETHEIROWNPERFORMANCEWITHTHEAVERAGEPERFORMANCEESTIMATEDBYTHECOSTFUNCTIONUNIVERSITIESCANVARYSIZEANDSTRUCTUREOFTHESTUDENTBODYANDCONSIDERTHELIKELYEFFECTONTHEIRBUDGETTHECOSTFUNCTIONMAYALSOBEFEDINTOTHEMECHANISMFORPROVIDINGFUNDINGFORDOMESTICSTUDENTSTHROUGHTHERELATIVEFU

17、NDINGMODELTHECOSTFUNCTIONMAYALSOBEUSEDTOEVALUATENEWWAYSOFREIMBURSINGINSTITUTIONSANDCANBEUSEFULINEVALUATINGPRICINGPOLICYFORDOMESTICFULLFEESTUDENTSITMAYBEUSEDTOESTIMATETHECOSTSANDBENEFITSOFPROVISIONOFHIGHEREDUCATIONFOROVERSEASSTUDENTS,ANDTHEREBYGUIDEPRICINGPOLICYWITHRESPECTTOTHEM3ELLIPSIS4APPLICATIONO

18、FTHECOSTFUNCTION41TOTALCOSTSINTHISSUBSECTION,THEESTIMATEDCOEFFICIENTSOFTHECHOSENCOSTFUNCTIONABOVEAREUSEDTODERIVEESTIMATESOFTOTALCOSTASDEFINEDINEQUATIONS2THEPREDICTEDVALUESFOR1997,USINGDATAFORALLSTUDENTS,AREPRESENTEDINTABLES3AND4BELOWINTABLE3,THEUNIVERSITIESAREARRANGEDFROMSMALLESTTOLARGESTBYEFTSULOAD

19、,ANDAREPRESENTEDWITHINFORMATIONONSTUDENTLOADTOTALCOSTFIGURESBOTHACTUALANDPREDICTEDAREALSOSHOWNTHEMODELYIELDSPREDICTEDVALUESOFTOTALCOSTSTHATAREREASONABLEAPPROXIMATESOFTHEACTUALCOSTS,WITHOVER70PERCENTOFPREDICTEDVALUESWITHINA10PERCENTMARGINOFERRORTHEREAPPEARSTOBEARELATIVELYCONSTANTRELATIONSHIPBETWEENTH

20、ESTUDENTLOADANDTHETOTALCOSTOFTEACHINGIMPLYINGTHATAVERAGECOSTSAREINATIGHTBANDTHISISSUEISEXPLOREDFURTHERBELOWTHECUBICFORMOFTHECOSTFUNCTIONINDICATESRISINGCOSTSOFTEACHINGATLOWSTUDENTLOADLEVELS,WHILETHERATEOFGROWTHGRADUALLYDIMINISHESASSTUDENTNUMBERSRISEBECAUSEOFGAINSFROMECONOMIESOFSCALEATVERYHIGHSTUDENTN

21、UMBERS,THECOSTFUNCTIONIMPLIESARENEWEDRAPIDRISEINTHECOSTSINCURREDBYAUSTRALIANUNIVERSITIESATYPICALCUBICCOSTFUNCTIONISPRESENTEDINFIGURE1,WHICHREPRESENTSTHECOSTOFPROVIDINGHIGHEREDUCATIONTOAPOSTGRADUATEBYRESEARCHSTUDENT,USINGUNSWFIXEDVALUESFORDISCIPLINESHARESANDOTHERLEVELSOFSTUDYTHECURVEISTYPICALOFUNIVER

22、SITIESINAUSTRALIAWITHLARGEPOSTGRADUATEENROLMENTSFORSMALLERUNIVERSITIESSUCHASTHEUNIVERSITYOFCANBERRAORTHENORTHERNTERRITORYUNIVERSITY,THETOTALCOSTCURVEISSIMILARLYSHAPEDBUTWITHRELATIVELYLOWERLEVELSOFCOSTSTHERENEWEDRAPIDRISEATHIGHPOSTGRADUATESTUDENTLOADMAYBEACONSEQUENCEOFTHEUNIVERSITIESHAVINGAMOREEXPENS

23、IVESTAFFPROFILEWITHHIGHERPROPORTIONSOFPROFESSORSASTHEIRPOSTGRADUATESTUDENTLOADINCREASESASUNIVERSITIESINCREASETHESIZEOFTHEIRPHDPROGRAMSTHEYAREABLETOMOUNTMOREAMBITIOUSANDMORECOSTLYRESEARCHPROGRAMSTHATALSOATTRACTTHEMOREABLEANDHIGHERPAIDACADEMICSTAFFTHETOTALCOSTCURVESFORPOSTGRADUATEBYCOURSEWORKSTUDENTS,

24、USINGFIXEDVALUESFORALLTHEOTHERVARIABLES,YIELDAFLATTERCUBICCURVETHANFORPOSTGRADUATEBYRESEARCHWORKWHEREASMOSTSTUDENTSUNDERTAKINGPOSTGRADUATEBYRESEARCHDEGREESAREPHDSTUDENTS,THECOURSEWORKPOSTGRADUATECOURSESAREPREDOMINANTLYATTHEMASTERSLEVELMASTERSLEVELCOURSESWOULDNOTREQUIREASEXPENSIVEASTAFFPROFILEASPHDST

25、UDENTSACONTRASTISSHOWNBYTHECORRESPONDINGCURVEFORUNDERGRADUATESTUDENTS,SHOWNINFIGURE2,WHERECOSTSMONOTONICALLYINCREASEBYVIRTUEOFTHEPOSITIVECOEFFICIENTSOBTAINEDFORALLTHREEUNDERGRADUATESTUDENTLOADREGRESSORS,L3,L32ANDL33,ANDOVERTHERANGESHOWNTHECUBICTERMAPPEARSTOHAVELITTLEEFFECTINTHISCASE,ECONOMIESOFSCALE

26、GAINEDFROMINCREASINGPOSTGRADUATESTUDENTSNUMBERSARENOTREALISEDINTHESAMEWAYWITHTHEINCREASEINUNDERGRADUATESTUDENTNUMBERSITISALSOPOSSIBLETHATWITHINUNIVERSITIES,CROSSSUBSIDISATIONOFTEACHINGCOSTSOCCURSBETWEENLEVELSOFSTUDIES,WHEREITBECOMESCHEAPERTOMOUNTPARTICULARTYPESOFPOSTGRADUATECOURSESWHENTHEREARELARGEN

27、UMBERSOFUNDERGRADUATESTUDENTS42AVERAGEANDMARGINALCOSTSTHEAVERAGEANDMARGINALCOSTESTIMATESFOR1997AREPRESENTEDINTABLE4THEAVERAGECOSTOFHIGHEREDUCATIONACROSSTHEUNIVERSITIESRANGEDBETWEENBETWEEN7900TOJUSTUNDER14000IN1997COLUMNS3TO5PRESENTTHEMARGINALCOSTSBYLEVELOFSTUDYTHEMARGINALCOSTSFORUNDERGRADUATESTUDENT

28、SAREAROUND2000FORSMALLERUNIVERSITIESANDTHESECOSTSTENDTOINCREASEWITHTHEEFTSULOADOFTHEUNIVERSITIESMONASHUNIVERSITY,THELARGESTUNIVERSITYWITH15TIMESTHESTUDENTLOADOFTHENTUTHESMALLESTUNIVERSITY,HASAMARGINALCOSTFORUNDERGRADUATESTUDENTSOF16300INGENERAL,THEMARGINALCOSTFORUNDERGRADUATESTUDENTSISSMALLCOMPAREDW

29、ITHTHATOFGRADUATESTUDENTSMARGINALCOSTSOFCOURSEWORKGRADUATESTUDENTSLIEINBETWEENTHOSEOFTHEUNDERGRADUATEANDRESEARCHPOSTGRADUATESTUDENTS,BUTAREALSOPOSITIVELYCORRELATEDWITHTHESIZEOFTHEUNIVERSITYINCONTRAST,THEMARGINALCOSTSFORRESEARCHPOSTGRADUATESTUDENTSARESUBSTANTIALLYHIGHERTHANBOTHCOURSEWORKGRADUATEANDUN

30、DERGRADUATESTUDENTS,ANDUNIVERSITYSIZEDOESNOTEXPLAINTHEOBSERVEDVARIATIONSOFTHETENLARGESTUNIVERSITIESONTHELIST,THREEHAVEMARGINALCOSTSOVER75,000FORTHEIRRESEARCHPOSTGRADUATESTUDENTS,BUTATTHESAMETIME,THEREMAININGLARGEUNIVERSITIESHAVECORRESPONDINGMARGINALCOSTSOFUNDER35,000ATTHEOTHERENDOFTHESCALE,SOMESMALL

31、ERUNIVERSITIESHAVEMARGINALCOSTSFORRESEARCHPOSTGRADUATESTUDENTSTHATAREOVER60,000ASELECTIONOFUNIVERSITIESHAVEMARGINALCOSTSFORCOURSEWORKPOSTGRADUATESTUDENTSTHATARESIGNIFICANTLYHIGHERTHANRESEARCHPOSTGRADUATE13STUDENTSTHESEINCLUDEMACQUARIEUNIVERSITY,LATROBEUNIVERSITY,RMIT,QUTANDMONASHUNIVERSITYTHISVARIAT

32、IONISLIKELYTOARISEFORACOMBINATIONOFREASONSFIRST,LARGEUNIVERSITIESARENOTNECESSARILYTHOSEWITHLARGEPROPORTIONSOFPOSTGRADUATESTUDENTSSECOND,THEREMAYBELARGEDIFFERENCESINCOMPOSITIONBYDISCIPLINEWITHSOMEUNIVERSITIESSPECIALISINGINHIGHCOSTCOURSESTHIRD,SMALLSAMPLESIZESINSOMESMALLERUNIVERSITIESMAYLEADTOMISLEADI

33、NGRESULTSINGENERAL,THEMARGINALCOSTOFHIGHEREDUCATIONISUSHAPED,ASINFIGURE3BELOW,REFLECTINGINCREASINGRETURNSWITHECONOMIESOFSCALE,THENDIMINISHINGRETURNSDERIVEDFROMFIXEDINPUTSTOTEACHINGATLOWSTUDENTNUMBERS,MARGINALCOSTSARERELATIVELYHIGHBUTTHISGRADUALLYDECLINESASSTUDENTNUMBERSRISETOABOUT1200EFTSUSTHEREAFTE

34、R,THEMARGINALCOSTSINCREASEATYPICALMARGINALCOSTCURVEFORPOSTGRADUATERESEARCHSTUDENTSISSHOWNINFIGURE3,DERIVEDUSINGFIXEDVALUESFORPOSTGRADUATECOURSEWORKANDUNDERGRADUATESTUDENTLOADSFORUNSWTHECOSTOFPROVIDINGPOSTGRADUATECOURSESISHIGHERTHANUNDERGRADUATECOURSESBECAUSEOFTHEHIGHLEVELOFSPECIALISEDRESOURCESREQUIR

35、EDTHEDISTRIBUTIONOFSTUDENTSACROSSTHEVARIOUSDISCIPLINESISALSOIMPORTANTINEXPLAININGDIFFERENCESBETWEENUNIVERSITIES,WITHMANYUNIVERSITIESSPECIALISINGINTHEPROVISIONOFCERTAINCOURSES43THECOSTOFOVERSEASSTUDENTSTHECOSTFUNCTIONCANBEUSEDTOESTIMATETHECOSTOFPROVIDINGHIGHEREDUCATIONTOOVERSEASSTUDENTSHOWEVER,INFORM

36、ATIONONTHECOSTSOFHIGHEREDUCATIONINAUSTRALIAISAVAILABLEONLYFORTHETOTALNUMBEROFSTUDENTS,THATIS,OVERSEASPLUSDOMESTICSTUDENTS,ATAPARTICULARDATENODATAAREAVAILABLERELATINGTOTHECOSTTHATWOULDBEINCURREDIFONLYDOMESTICSTUDENTSWEREBEINGEDUCATEDTHISMEANSTHATESTIMATESOFTHEEXTRACOSTINVOLVEDINEDUCATINGOVERSEASSTUDE

37、NTSCANONLYBEOBTAINEDBYUSINGUNIVERSITYCOSTFUNCTIONSANDEVALUATINGTHECOSTSUNDERALTERNATIVEASSUMPTIONSABOUTTHENUMBEROFSTUDENTSTHEQUALITYOFSUCHESTIMATESISTHEREFORENECESSARILYCONSTRAINEDBYTHEPROPERTIESOFEMPIRICALCOSTFUNCTIONSTHECOSTFUNCTIONISAPPLIEDTODOMESTICSTUDENTDATATOPREDICTTHEAVERAGEANDMARGINALCOSTSF

38、ORDOMESTICSTUDENTSCORRESPONDINGVALUESFOROVERSEASSTUDENTSAREOBTAINEDASTHERESIDUALVALUESOFTHECOSTESTIMATESFORALLSTUDENTSANDFORDOMESTICSTUDENTSONLYTHERESULTSOFTHISEXERCISEFOR1997ARESHOWNINTABLE5UNIVERSITIESACROSSAUSTRALIAVARYWIDELYINTHEDISTRIBUTIONOFSTUDENTLOADBETWEENDOMESTICANDFEEPAYINGOVERSEASSTUDENT

39、SINGENERAL,THEOVERSEASSTUDENTPOPULATIONCOMPRISELESSTHANFIVEPERCENTOFTHESTUDENTPOPULATIONINMOSTREGIONALUNIVERSITIES,BUTAREMUCHMOREIMPORTANTINUNIVERSITIESLOCATEDMAJORCITYCENTRESIN1997,THETOPFIVEUNIVERSITIES,INTERMSOFNUMBERSOFFULLFEEPAYINGFOREIGNSTUDENTLOADSAREMONASHUNIVERSITY,RMIT,THEUNIVERSITYOFMELBO

40、URNE,UNSWANDCURTINUNIVERSITYOFTECHNOLOGYHOWEVER,INRELATIVESTUDENTSHARES,RMITISHIGHESTWITH29PERCENTOFITSSTUDENTLOADFROMOVERSEAS,FOLLOWEDCLOSELYBYCURTINUNIVERSITYWITHFOREIGNSTUDENTSCOMPRISING27PERCENTOFITSTOTALSTUDENTLOADTHEREISACOMPOSITIONALISSUEINGENERATINGCOSTSFOROVERSEASSTUDENTSIFTHECOSTSTRUCTUREO

41、FOVERSEASSTUDENTSISPROJECTEDFROMINFORMATIONABOUTALLSTUDENTSANDDOMESTICSTUDENTS,THEIMPLICITASSUMPTIONISMADETHATTHEDISCIPLINECOMPOSITIONOFOVERSEASSTUDENTSISTHESAMEASTHATOFDOMESTICSTUDENTSHOWEVER,THISISNOTTHECASEDATAFROMDETYA,1998SHOWTHEDISCIPLINECOMPOSITIONOFOVERSEASSTUDENTSIN1997ABOUTHALFOFALLOVERSEA

42、SSTUDENTSWEREUNDERTAKINGCOURSESINTHEBUSINESS,ADMINISTRATIONANDECONOMICSFIELDOFSTUDYWHEREASAMONGDOMESTICSTUDENTSTHEPROPORTIONUNDERTAKINGCOURSESINTHISDISCIPLINEWASABOUT20PERCENTSINCEBUSINESS,ADMINISTRATIONANDECONOMICSISAFAIRLYLOWCOSTCOURSETHEEFFECTOFTHEASSUMPTIONISLIKELYTOINFLATETHECALCULATEDAVERAGECO

43、STOFOVERSEASSTUDENTSWITHTHISCAVEATINMIND,THEAVERAGECOSTSARESHOWNINTHEFINALCOLUMNOFTHETABLEINGENERAL,THEAPPARENTAVERAGECOSTOFHIGHEREDUCATIONPROVISIONFOROVERSEASSTUDENTSISGREATERTHANFORDOMESTICSTUDENTSINMANYINSTITUTIONS,THESEAPPARENTCOSTDIFFERENCESAREGREATERBYAFACTOROFTWOORTHREETHETABLEALSOSHOWSTHATWH

44、ILETHEESTIMATEDCOSTSOFHIGHEREDUCATIONFORDOMESTICSTUDENTSARECOMPARABLEACROSSTHEUNIVERSITIESNATIONWIDE,THECORRESPONDINGCOSTSFOROVERSEASSTUDENTVARYWIDELYACROSSUNIVERSITIES,THEPERCAPITACOSTOFTEACHINGFORADOMESTICSTUDENTSRANGEONLYBETWEEN7000AND12000,REFLECTINGTHEDISCIPLINEANDLEVELOFCOURSESTRUCTUREOFTHEUNI

45、VERSITYINCONTRAST,THEAPPARENTPERCAPITACOSTOFTEACHINGOVERSEASSTUDENTSVARIESWIDELY,FROM9300TOASMUCHAS48,500THETWOSMALLESTUNIVERSITIES,THENORTHERNTERRITORYUNIVERSITYANDTHEUNIVERSITYOFBALLARAT,INCURTHEHIGHESTAPPARENTPERCAPITACOSTINMOUNTINGCOURSESFOROVERSEASSTUDENTSOFATLEAST40,000PERSTUDENTANUMBEROFUNIVE

46、RSITIESINCURAPPARENTPERCAPITACOSTFOROVERSEASSTUDENTSBETWEEN20,000AND29,000THESEINCLUDEMACQUARIEUNIVERSITY,SYDNEYUNIVERSITYOFTECHNOLOGY,UNSW,UNIVERSITYOFQUEENSLANDANDTHEUNIVERSITYOFSYDNEYTHERELATIVELYLOWPERCAPITACOSTSINCURREDBYRMITANDCURTINFORITSOVERSEASSTUDENTSWITHLARGEFOREIGNSTUDENTSHARESINTHEIRTOT

47、ALSTUDENTPOPULATIONMAYBEARESULTOFTWOEFFECTSFIRST,ECONOMIESOFSCALESAREACHIEVEDWITHRELATIVELYHIGHSTUDENTNUMBERSSECOND,WITHAHIGHPROPORTIONOFOVERSEASSTUDENTSINTHETOTALSTUDENTLOAD,THECOMPOSITIONALPROBLEMMENTIONEDABOVEISLESSIMPORTANTSINCETHEOVERSEASSTUDENTDISCIPLINESTRUCTUREISCLOSERTOTHATOFTHETOTALSTUDENT

48、DISCIPLINESTRUCTURE5CONCLUSIONINFORMATIONDERIVEDFROMTHEESTIMATIONOFASIMPLECOSTFUNCTIONCANASSISTPLANNERSANDUNIVERSITYMANAGERSINADDRESSINGPROBLEMSOFRESOURCEALLOCATIONANDPRICINGALTHOUGHMETHODOLOGICALDIFFICULTIESEXIST,THEESTIMATIONOFACOSTFUNCTIONCANNEVERTHELESSHELPTOVIEWUNIVERSITYPRODUCTIONANDCOSTRELATI

49、ONSHIPSINASYSTEMATICANDTHEORETICALLYPLAUSIBLEWAYINTHISSTUDY,NEWCOSTFUNCTIONSWEREESTIMATEDFORTHEAUSTRALIANUNIVERSITYSECTORUSINGPOOLEDSERIESOFCROSSSECTIONALDATATHESTUDYENABLEDTHEQUANTIFICATIONOFTHECOSTDIFFERENCESBETWEENLEVELSOFSTUDIESANDSUBJECTAREASITWASHYPOTHESISEDTHATUNIVERSITYTOTALCOSTSWOULDEXHIBITVARYINGCOSTMOVEMENTSALONGPRODUCTIONSTAGESSUGGESTINGAHIGHERORDERFUNCTIONALFORMACCORDINGLYACUBICFUNCTIONALFORMWASUSEDTOESTIMATEMODELITWASFOUNDTHATTHECUBICANDQUADRATICTERMSWEREUSEFULINEXPAININGTOTALCOSTSTHOUGHNOTINALLINSTANCESTHENEWCOSTFUNCTIONWILLBEAUSEFULTOOLFORUNIVERSITYMANAGERSINEXPLORINGTHEEFFEC