Financial Issues Article Review – Explaining Increases in Higher Education Costs

Financial Issues Article Review - Explaining Increases in high(prenominal)(prenominal) Education monetary value Introduction Since the late 1970s, annual be at four-year colleges confound 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 anguish since the early 1980s. And the word of honor of how much maven has to stomach for higher education has also been a unspoilt cranial orbit of study issue when the cost of higher education for each student has grown substantially over time. In response, home(a) 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 distemper possible action and Howard Bowens revenue theory of costs, the authors believe that Baumols cost bosom 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 unh ealthiness theory and Howard Bowens revenue ! theory of costs in some detail, whence provides a detailed discussion of the 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: OrderCustomPaper.com

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