Cost Structure and Economies of Scale in Chilean Traditional Universities: Comparative Study between State and Private Universities of CRUCH
Aguirre Álvarez. Juan Pablo
Universitat de Lleida. Departament d'Administració d'Empreses
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In Chile, over the years, higher education has experienced a series of changes, with the creation of new universities and the subsequent increasing number of enrolled students, among other transformations. At present, there is little information about the efficiency with which the state resources are managed regarding this issue. This investigation identifies the main variables affecting the cost of Chilean traditional private and state universities, entities that constitute the Chilean Traditional University Council or CRUCH. Furthermore, this paper presents an evaluation of economies of scale in these universities, becoming evident that average remunerations and full-time equivalents are relevant in these entities’ production, this last input is relevant because represent the available human resource to develop all the products. The results of this research will provide tools that will make it possible to plan the expansion of these institutions in all their production lines and to make decision regarding the placement of resources by the State. Finally, the study has allowed us to conclude that CRUCH private universities are not more cost efficient than public universities in all their production lines, thereby destroying the premise that the public sector is managed less efficiently than the private sector.