Economics 349HE - Advanced Topics in Economics: 'Economics of Higher Education'

This course applies microeconomic theory to the "industry" of academia, analyzing how institutions, students, and governments interact in an increasingly volatile market. We begin by evaluating education as an investment. We analyze the private wage premium and broader social returns (innovation, civic engagement) and debate the "signaling hypothesis" (does a degree create skill, or simply certify pre-existing ability?). We then dissect the university balance sheet to understand why tuition costs consistently outpace inflation. We explore how institutions use merit and need-based aid to maximize net tuition revenue while managing enrollment yields. We also examine the economic implications of the $1.7 trillion student debt crisis. The course culminates in an analysis of the existential threats facing higher education.

Prereq: ECON-212.