MEETING THE DEMAND FOR HIGHER-EDUCATION WITHOUT BREAKING THE BANK - AFRAMEWORK FOR THE DESIGN OF STATE HIGHER-EDUCATION POLICIES FOR AN ERA OF INCREASING DEMAND

This article offers a model of state policymaking as it affects privat e higher education. It advances three constructs of policy postures: l aissez-faire, central-planning, market-competitive. It explores empiri cally the relationships of the policies and postures to state characte ristics and policy outcome proxies and draws policy implications. The analysis suggests that market-competitive-oriented policies are likely to be cost-effective for most states.