The economics of the University of the Air of Japan revisited
In 1988 UAJ completed the first phase of its initial plan, thus enabling an assessment of the cost-effectiveness of UAJ and a forecast of its future based on available data. The cost per student at UAJ is 2/5, 1/2, and 3/4 of that at national, public, and day programs of private universities, and 1.1 times and 6.7 times of that at evening and correspondence programs of private universities repectively. The projected cost per graduate is slightly lower than that at national universities and 1.1, 1.9 and 2.3 times of that at public, correspondence and day, and evening programs of private universities respectively. The cost per credit is 1.3, 1.5, 2.2, 2.4 and 4.6 times of national and public universities, day, evening, and correspondence programs of private universities respectively.The simulations indicate that the cost per credit can be decreased by expanding the operation of UAJ to a nationwide scale, employing a surface circuit or satellite system; however, it is necessary that the number of students be doubled in order to make the cost per credit equivalent to that at public universities. However, even when the number of students is four times, the cost per credit is not equivalent to that at day programs of private universities regardless of what method is used. Although the current cost per credit is higher than that of conventional universities, changes in cummunication technology and student characteristics could alter the cost-effectiveness of UAJ.
Scale and scope economies of distance education in Australian universities
Despite compelling qualitative arguments for scale and scope economies in university-level distance education, as distinct from traditional class-based face-to-face instruction, there is little rigorous quantitative evidence in support. In this paper, we explore the scale and scope economies of distance education using a multiplicatively separable cost function and a sample of 37 Australian public universities over the 10-year period from 2003 to 2012. The results suggest strong overall scale and scope economies and product-specific scale economies for distance education. Further, the economies of scope for distance education are increasing with mean output, suggesting an increasing cost benefit of producing distance education in conjunction with traditional class-based face-to-face teaching. This provides an important implication: when allocating places for different modes of attendance or considering further expansion of student numbers, there should be a priority on distance education as a means of achieving significant cost savings.
The Economics and Management of Small Post-secondary Distance Education Systems
After reviewing previous work on the economics of distance education, which has been based on the large scale operation of the U.K. Open University, the economics of smaller systems are analyzed. It is shown that models used in conventional education are unhelpful and a new cost model based on the functions of course development and services delivery is described. This model is then employed, using data from Athabasca University, to explore the importance of factors such as course life and institutional costs. It is then used to examine the economic impact of policy alternatives such as changes in ratio of student numbers to credits offered and in the mix of programming of the institution. The second part of the paper argues the thesis that small distance education systems require tighter management than conventional institutions. It examines the four main activities of management: planning, organizing, leading and evaluating in order to highlight areas of administration requiring special attention.