1 ECONOMIC MODELS AND POLICY ANALYSIS IN HIGHER EDUCATION:

Policy analysis is a term that is used very often in education circles and seems to have multiple meanings depending on the background of the person using the phrase and the context in which it is used. Generally speaking, a policy is “a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions ” (Merriam-Webster Dictionary, 2007), and an educational policy is “a specification of principles and actions, related to educational issues, which are followed or which should be followed and which are designed to bring about desired goals ” (Trowler, 2003, p. 95). Who are the policy makers in higher education? For the postsecondary setting, policy makers would include entities and individuals who enact these laws and rules, including academic departments, colleges, institutions, and local, state, and national governments. The goal of educational policies is to lead to desired changes in behavior for participants within the education system. For example, a state-level educational policy may be implemented to help increase the percentage of high school students who go on to pursue a postsecondary education. The goal of this policy is to change the behavior of some high school students who may not be likely to attend college following graduation. As another example, an academic department may desig