restricted access Universities in the Marketplace, and: Academic Capitalism, and: Remaking the American University: Market Smart and Mission Centered

This article presents new evidence on the conflict between two competing explanations of the increase in college costs, the cost disease theory of William Baumol and William Bowen and the revenue theory of cost of Howard Bowen. Using cross-section data, the article demonstrates that the cost disease explanation is more important than the revenue theory.