Rising tuitions and shrinking government budgets have pushed questions about productivity and resource use in U.S. higher education to the fore. In Paying the Piper three distinguished researchers examine the many successes of U.S. higher education, identify real problems, and carefully analyze potential solutions. Among the questions addressed are: On what do colleges and universities spend their money and how have their spending patterns changed over time; what does "quality" really mean in higher education and how is it related to price and cost; what are appropriate measures of "productivity"; and does increasing the amount of federal financial aid encourage colleges to raise their tuitions? The essays comprising this volume demonstrate that the application of basic economic principles and a combination of both descriptive and econometric analyses can illuminate a number of issues. Using economic concepts and tools to provide insight into these pressing questions, Paying the Piper helps us to understand the recent past, anticipate the future, and develop policies that can influence the future.

Michael S. McPherson is a distinguished American economist who has made significant contributions to the study of economics in higher education. He is the former president of Macalester College, where he served from 1996 to 2003, and a former professor of economics at Williams College, where he also chaired the Economics Department and served as dean of the faculty. Morton Owen Schapiro is a prominent American economist and academic leader, recognized for his extensive work in the economics of higher education. Schapiro served as the 16th president of Northwestern University from 2009 to 2022, and also served as the president of Williams College from 2000 to 2009.Gordon C. Winston was a noted economist particularly recognized for his extensive work on the economics of higher education. He served as Provost of Williams College from 1988 to 1990 and was a member of the Institute for Advanced Study in Princeton, NJ.