Thursday, April 20, 2017
Sibley Auditorium, Bechtel Engineering Center, Reception to follow in Garbarini Lounge, Bechtel Engineering Center
Lawrence S. Bacow
President Emeritus, Tufts University
In their classic study of the performing arts, William Baumol and William Bowen observed that in sectors of the economy where productivity growth lagged that of the economy as a whole, costs would rise faster than inflation. Higher education is often cited as a classic example. Indeed, politicians are fond of castigating colleges and universities and their leaders for their failure to rein in rising costs. But while Baumol and Bowen may provide a technical explanation of why college costs seem to rise inexorably, their theory says little about why university leaders often seem reluctant to expend political capital to control costs. In fact, while there is much hand- wringing about rising costs, it is hard to identify any constituency on a college campus including students, faculty, parents, and even the board that prioritizes cost containment over competing goals.
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