An investigation on allocative efficiency and implications of new funding plans for the Australian universities

Mamun, Shamsul Arifeen Khan and Rahman, Mohammad Mafizur (2016) An investigation on allocative efficiency and implications of new funding plans for the Australian universities. Educational Research for Policy and Practice, 15 (1). pp. 71-82. ISSN 1570-2081


In 2013 and 2014, the Australian Federal Government introduced the Gonski reforms and fee deregulation measures to reform the prevailing financing provisions for education sectors in Australia. The central proposition of the proposed new measures was to reduce the funding of public universities by the Federal Government. One likely consequence of the proposed measures was thus decreased government funding. In the given context, public universities were pressured into designing new strategies to cope with decreasing government funding. This paper examines the productive efficiency of public universities
as a potential strategy. Using a concept of cost efficiency in production economics, cross-sectional data, correlation analysis, and regression analysis, this study explores the scope of allocative efficiency for public universities. Finally, this study recommends the intensive use of non-teaching staff in order to cope with any budgetary challenges.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published Version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 28 Sep 2015 05:43
Last Modified: 26 Apr 2016 01:30
Uncontrolled Keywords: Australia; allocative efficiency; scale efficiency; unit cost; regression analysis
Fields of Research : 14 Economics > 1402 Applied Economics > 140204 Economics of Education
Identification Number or DOI: 10.1007/s10671-015-9177-0

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