Administrative scale economies in public organisations: evidence from Australian public universities

Abstract

ABSTRACT A voluminous empirical literature has examined scale economies in public organisations, particularly in local government. By contrast, little effort has been directed at the empirical investigation of economies of scale in higher education administration, including in Australian universities. To address this gap in the empirical literature, this paper examines administrative scale economies and task density in Australian public universities for the period 2009/10–2018/19 using a pooled data framework. We find that there are administrative scale economies in Australian universities and that task density is a key determinant of administrative intensity. In addition, regional universities exhibit a higher level of administrative intensity than their metropolitan counterparts. We conclude by canvassing some of the main public policy implications of our findings.