Examined the revenue and cost structures of higher education institutions. First, documented the reduced importance of state appropriations and the increased importance of tuition revenues during the early 1990s in public universities. Second, considered how the changed revenue structure influenced cost efficiency in public higher education…

Using a model of rational student choice as its foundation, this study examined whether state policies toward higher education encourage junior colleges and universities to admit too many students. The optimal-size decisions of budget-maximizing junior colleges and universities were derived and compared to the optimal-size decisions of a social…