Topic > Economic Theory by Alan Greenspan - 717

According to Yeager, Nelson, Potter, Weidman, and Zullo (2001), "Productivity and efficiency consider both costs, or expenses, and benefits, or outcomes" (p 6) towards institutional development through finance. In finance and higher education, productivity is what is needed to move an institution forward, and the economist has an influential role in helping schools be more competitive and productive. The implications of productivity and institutional expenditures bring to mind economic models that question whether we can do better work. Financial contracts and a misunderstood financial reserve should be avoided and “changes in the sources of funding for education have, in most cases, been the result of the financial squeeze on public budgets” (Woodhall, 2007, p. 9) . These issues suggest that institutions need to optimize financial status beyond government interventions and lean more towards an ongoing and innovative source of funding from private and public sources.