What question did this study set out to answer?

The aim is to benchmark and compare educational expenditures across postsecondary institutions by adjusting for various factors.

June 6, 2026Open Access

Towards reasonable efficiency in degree production: A method for benchmarking the educational expenditures of postsecondary institutions

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Compares educational expenditures across institutions, suggesting methods to improve efficiency.

The aim is to benchmark and compare educational expenditures across postsecondary institutions by adjusting for various factors.
Used longitudinal data from IPEDS for 1,496 four-year institutions, public and private not-for-profit.
Adjusted expenditures using the Regional Price Parities index for cost of living differences.
Applied panel regression to predict expenditures based on credentials, faculty proportions, and salaries.
Found that 19-25% of public institutions had higher-than-expected expenditures.
Identified that 36-40% of private institutions also exhibited higher-than-expected expenditures.

Horn et al. (2019) studied this question.

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