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Explaining Increases in Higher Education Costs

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Author Info

  • Robert B. Archibald

    ()
    (Department of Economics, College of William and Mary)

  • David H. Feldman

    ()
    (Department of Economics, College of William and Mary)

Abstract

This paper 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 paper demonstrates that the cost disease explanation dominates.

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File URL: http://economics.wm.edu/wp/cwm_wp42.pdf
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Bibliographic Info

Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 42.

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Length: 34 pages
Date of creation: 04 Sep 2006
Date of revision:
Handle: RePEc:cwm:wpaper:42

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Postal: P.O. Box 8795, Williamsburg, VA 23187-8795
Phone: (757) 221-4311
Fax: (757) 221-2390
Web page: http://www.wm.edu/economics/
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Keywords: Higher education costs; cost disease; revenue theory of cost;

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  1. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  2. Thomas Lemieux, 2006. "Postsecondary Education and Increasing Wage Inequality," American Economic Review, American Economic Association, vol. 96(2), pages 195-199, May.
  3. Goldin, Claudia & Margo, Robert A, 1992. "The Great Compression: The Wage Structure in the United States at Mid-century," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 1-34, February.
  4. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584.
  5. Robert B Archibald & David H Feldman, 2004. "State Higher Education Spending and the Tax Revolt," HEW 0412003, EconWPA.
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