Follow the higher ed money

INSIGHTS & RESOURCES

Follow the higher ed money

The Australian
by Bernard Lane
29 August 2017

“Earlier this month we reported remarks by former ANU business dean Keith Houghton that although his research showed that universities as a sector had lifted efficiency over recent years, the track record of some institutions suggested they would struggle to find the productivity to meet the government’s 2.5 per cent efficiency dividend……..Universities would only have to boost their productivity to save more than the $1.2bn the Turnbull government is trying to cut from university funding in the next four years, according to a new study. Research by economist Keith Houghton shows that if all universities could reach at least 85 per cent of the productivity level attained by Australia’s most efficient universities, the university system could save well over $500 million a year, or in excess of $2bn over four years.” It’s the if that makes all the difference”

There is growing anticipation that the federal government’s response to the Universities Accord review’s final report will come soon. Given this and the fact that the budget is less than a month away, it is timely to review one of the final report’s key insights.

Recently released analysis finds that one large Group of Eight university outperformed other public universities in its research and education productivity outcomes during the pandemic.

The joint and common cost problem arises where there are two or more outputs that arise from costs that are shared in the production of these outputs. In many situations, the ability to assign costs to these two or more outputs is not complex. But there are instances where it is highly complex. In these situations, there is a need to use advanced analytics to provide a valid and reliable estimate of costs.

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