Financial Issues Article Review – Explaining Increases in Higher Education Costs

Financial Issues Article Review - Explaining Increases in high(prenominal)(prenominal) Education bell Introduction Since the late 1970s, annual be at four-year colleges sop up risen three times as fast as inflation, and, with savings rates dropping and differentiate aid to higher(prenominal) education being cut, students and their families have been hale to take on ever more debt in put to receive higher education (Surowiecki, 2011). The rapid increases in higher education be have become a coarse public furbish up since the early 1980s. And the word of honor of how much maven has to cave in for higher education has also been a unspoilt knowledge base of study issue when the cost of higher education for individually student has grown substantially over time. In response, study commissions have been created in regard of the be and accountability in higher education. As a result, there needs to be a clear understanding of the causes of the rapid increase in higher education be. Between two competing theories explaining the rise of costs in higher education which are William Baumols cost ailment conjecture and Howard Bowens revenue theory of costs, the authors believe that Baumols cost lovingness theory has a firmer behavioral foundation than Bowens revenue theory. However, no matter of this advantage, the choice between them is actually rather empirical (Archibald & antiophthalmic chemical element; Feldman, 2008).

Summary The article Explaining Increases in Higher Education be by Archibald & Feldman (2008) first explains William Baumols cost unhealthiness theory and Howard Bowens revenue theory of costs in some detail, w herefore provides a detailed discussion of t! he competing explanations for rapid cost increases in higher education, and finally contains the examen and the discussion of the policy consequences of the findings. Baumols cost disease is a phenomenon described by William J. Baumol and William G. Bowen back in the 1960s. It is establish on the idea that... If you want to get a across-the-board essay, order it on our website: OrderEssay.net

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