In this essay, the researcher states that the unit of analysis is institution level and the study population is all public four-or-more year institutions in the United States. To test the theory of an interdependent and intertwined synergistic relationship of an education society, the economics of a community and the overall economy, ANOVA, correlation analysis, and Regression Modeling analysis was applied by the researcher. This essay is also designed to frame the discussion about approaches states can use to build better models to connect public information about the economics of higher education along with state-level planning and public policy for higher education. This essay focuses mostly on the effects of graduation rate on the Gross State Product (GSP). The researcher mentiones that over the past decade, accountability pressure in education is at the forefront on all levels. According to the human capital theory that proved the theory regarding the interdependent and intertwined synergistic relationship between economics and education though it has shown its limits. To strengthen this theory the researcher would need to run a multiple regression model which can also and mainly be used to determine Unrestricted State Appropriation for higher education. In conclusion, the researcher sums up his research on the topic and states that he believes that conducting this model presented in the essay would be a great contribution to the knowledge base on public policy related to the financing of higher education.
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This essay analyzes synergistic relationship between higher education and the economic well being of a state. The researcher proposes analysis through a regression model related to variables that were described in the essay – per capita income, GSP, graduation rate, state appropriation…
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