Introduction

In the ever-evolving landscape of higher education, understanding economic reasoning is crucial for effective decision-making. ‘Campus Economics: How Economic Thinking Can Help Improve College and University Decisions’ serves as an invaluable primer for college and university administrators, trustees, and faculty members. Authored by Sandy Baum and Michael McPherson, this book provides insights into the financial workings of colleges, offering a common language for discussing the myriad challenges institutions face today.

This essential guide equips readers with a fundamental understanding of economic principles necessary for analyzing the pros, cons, and trade-offs involved in difficult decisions. The authors emphasize the unique characteristics of the academic enterprise and the primacy of the institutional mission, highlighting the importance of aligning finite resources with institutional goals.

The book addresses pressing issues in higher education, including the impacts of COVID-19, funding cuts, and declining enrollments. Baum and McPherson draw on real-world examples of campus issues, showcasing how economic concepts like opportunity cost and decision-making at the margin can facilitate meaningful discussions among stakeholders.

Navigating the complexities of higher education requires a comprehensive understanding of economic reasoning. ‘Campus Economics’ offers the tools necessary for faculty and administrators to engage in constructive dialogue that aligns with their institution’s mission. Through this book, readers will learn how to approach challenges with an economic lens, enabling them to make informed decisions that not only address immediate concerns but also pave the way for long-term success and sustainability.

Ultimately, ‘Campus Economics’ is more than just a book; it’s a crucial resource for anyone involved in the higher education sector. By fostering a deeper understanding of economic principles, it empowers academic leaders to confront urgent issues with clarity and confidence, ensuring that their institutions thrive amidst adversity.