Universities as nonprofits

This project (part of the research programme of the Institute for Governance Studies) is an extension of Carlo Salerno’s doctoral thesis work on the technical and allocative efficiency of research universities in the United States. Specifically, it seeks to test the validity of two commonly held perceptions about higher education institutions. First, universities engage in the cross-subsidization of education and research. Second, preferences for using particular technologies result in inefficient production practices.

The study differs from past approaches in two distinct ways. First, it applies an alternative theory of higher education production developed as part of the doctoral thesis that does not, like past efforts, treat research as a consumption activity. Second, the empirical work puts greater emphasis on analysing the production process rather than analysing price data.

Researcher involved:

Carlo Salerno