Doing More with Less Making Colleges Work Better

This volume contains a collection of papers by economists which examine the various strategies for cutting costs and improving productivity in higher education in the United States. The dramatic increase in the cost of attending most colleges and universi

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Joshua C. Hall Editor

Doing More with Less Making Colleges Work Better

Editor Joshua C. Hall Department of Economics Beloit College Beloit, WI 53511, USA [email protected]

ISBN 978-1-4419-5959-1 e-ISBN 978-1-4419-5960-7 DOI 10.1007/978-1-4419-5960-7 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2010932322 © Springer Science+Business Media, LLC 2010 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in ­connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Contents

  1 Introduction: The American Higher Education Problem.................... Richard Vedder

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Part I  Evaluating and Debating Causes   2 Financial Aid in Theory and Practice.................................................... Andrew Gillen

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  3 Price Discrimination and Rising Costs: Is There Any Relationship?..................................................................... Gregory Randolph

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  4 Cost Inflation in Intercollegiate Athletics: And Some Modest Proposals for Controlling It.................................... William Shughart II

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  5 The Academics–Athletics Trade-Off: Universities and Intercollegiate Athletics.............................................. Matthew Denhart, Robert Villwock, and Richard Vedder

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Part II  Is For-Profit Education the Solution?   6 For-Profit Education in the USA: A Primer.......................................... 139 James Coleman and Richard Vedder   7 A Market-Funded College’s Approach to Student Learning and Job Placement: An Insider’s View................................................... 165 John Woods   8 The Economics of For-Profit Education................................................ 177 Tyler Cowen and Sam Papenfuss

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Contents

Part III  Opportunities for Reform   9 Getting It Right: Where University Systems Lose Information in Designing Programs....................................................... 197 Justin M. Ross 10 Managing the Internal Organization of Colleges and Universities..... 217 Matthew Holian and Justin M. Ross 11 Privatize It: Outsourcing and Privatization in Higher Education...... 235 Carrie B. Kerekes 12 Improving Higher Education Using the Principles of Market-Based Management............................................................... 249 Gavin Romm and Edward Stringham 13 A Tale of Two Partners: How S