This book, written by Sandy Baum, professor of Economics at Skidmore College, is intended to help institutions of higher education grapple with the relationship between their educational mission and the resource constraints they face. Professor Baum examines demographic and financial circumstances facing colleges and universities; introduces basic economic concepts related to institutional financing; and illustrates economic concepts and reasoning that provide new perspectives on issues such as tenure and compensation. Higher Education Dollars and Sense, offers a common language and mode of analysis to facilitate constructive conversation on issues that frequently create conflict on campuses.