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  • Essay / Alan Greenspan's Economic Theory - 717

    According to Yeager, Nelson, Potter, Weidman, and Zullo (2001), “productivity and efficiency examine both costs, or expenses, and benefits, or outcomes » (p. 6) towards institutional development through finance. In finance and higher education, productivity is what is necessary to move an institution forward, and the economist plays an influential role in helping schools be more competitive and productive. The implications of productivity and institutional spending are reminiscent of economic models that challenge our ability to work better. Misunderstood financial contracts and financial reserves should be avoided and "changes in the sources of education funding were, in most cases, the result of financial compression of public budgets" (Woodhall, 2007, p. 9). These issues suggest that institutions need to optimize their financial situation beyond government interventions and more towards a sustained and innovative source of funding from the private and public sectors..