Abstract
This study presents an estimate of departmental cost functions at selected private liberal arts colleges. Longitudinal data for seven academic departments at 31 institutions were analyzed separately by a multiple regression data analytic procedure. The general least squares estimates are then used to calculate average and marginal costs at the average value for each department. These latter estimates indicate that departmental costs are relatively inelastic, a finding that indicates that the financial problems will be compounded by increases in average departmental costs in an era of enrollment decline.
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Tierney, M.L. An estimate of departmental cost functions. High Educ 9, 453–468 (1980). https://doi.org/10.1007/BF00144150
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DOI: https://doi.org/10.1007/BF00144150