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
