Analysis On Economies Of Scope Of Universities

With the deepening of reform and liberalization of education,Universities have more characteristics of economics.To improve internal efficiency of Universities and make full use of existing resources in Universities have become one of the main objectives.The theory of economies of scope would provide a new way to increase the internal efficiency of Universities.We can assume one University is a Multi-output Organization producing three outputs including teaching,research and social services.Therefore,we can make use of the theory of economies of scope to measure the internal efficiency of the Universities,so that the resources distribution of the Universities is more reasonable.So far,the cross-sectional analysis method and the panel data analysis method have been used to study the economies of scope in the whole higher education sector.If we study some College or University by the time series analysis method,we can provide reference to other Colleges to improve their inner economic of scope.Thereby,the economies of scope theory can provide a theoretical basis for the Government in the formulation of relevant policies.If we want to know if there exist economies of scope in some College or University,and inspect the situation over the years,we must construct one cost function.There are two methods in constructing of econometric model.If we measure the indicators in two ways,we may get two difficult results.Therefore,when we study by the cross-sectional analysis method or the panel data analysis method,we can choose the first target system;when we study by the time series analysis method,we can choose the second target system.