Doing More with Less: The “New” Realities of Higher Education Finance

In this essay, the author reviews The Economics of American Universities: Management, Operations, and Fiscal Environment, edited by Stephen A. Hoenack and Eileen L. Collins, and The Economic Value of Higher Education, by Larry L. Leslie and Paul T. Brinkman, within the larger context of the current and foreseeable political economy faced by higher education. Although it is clear that even from a purely economic standpoint, higher education is a “good” investment for the individual and society as a whole, constraints on external resources will force colleges and universities to look inward at the efficiency and effectiveness of their operations. In conclusion, the author suggests, colleges and universities cannot be all things to all people and instead should tailor their priorities to specific institutional strengths.