Jump to ContentJump to Main Navigation
Saving Alma MaterA Rescue Plan for America's Public Universities$
Users without a subscription are not able to see the full content.

James C. Garland

Print publication date: 2009

Print ISBN-13: 9780226283869

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226283883.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2019. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use (for details see www.chicago.universitypressscholarship.com/page/privacy-policy).date: 20 February 2019

Market Forces in Higher Education

Market Forces in Higher Education

(p.23) 2 Market Forces in Higher Education
Saving Alma Mater

Ernst R. Berndt

University of Chicago Press

This chapter reviews market forces in higher education. Government appropriations and tuition controls provide disincentives for public universities to rein in expenses and enhance productivity. Removing these disincentives not only would enhance efficiency but also would provide a host of other positive benefits, including a moderation of annual tuition increases. The loss of financial flexibility in public higher education was brought on primarily by a confluence of demographic and social changes that put increasing pressure on state treasuries and reduced the ability of lawmakers to make large discretionary appropriations. Partly this pressure came from growing societal needs—for health care, road and infrastructure maintenance, K–12 education, public employee pensions, and federal entitlements—but it also came from the growing scale of public higher education itself. As the pressure on state treasuries grew, lawmakers became increasingly concerned that public universities were making up for appropriation shortfalls by hiking tuition charges. The traditional business model for public higher education worked well only so long as public subsidies held up, state campuses were well maintained, faculty members were paid adequately for their teaching and research, and taxpayers received a solid education at a bargain price. But over the years, as state support has dwindled, public colleges have had no choice but to try to make up the shortfall by shifting the financial burden onto students and their families.

Keywords:   public universities, college education, higher education, market forces, tuitions, demographic change, social changes

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.