An Economic Model for Evaluating Costs and Benefits for Distance Education Programs

Distance education has to compete for scarce resources within an educational institution. Not only does a distance education program compete against more traditional forms of education; but, it also competes among countless options in the distance education field. In order to efficiently allocate these resources an educational institution must have an economic model with which to evaluate its distance education programs. This model must be able to assess all the costs and benefits of each program and investigate and identify factors which may yield empirical characteristics of financially successful programs, while conversely, avoiding any possible pitfalls. The development, analysis, and results of this proposed economic model could be used post hoc while modifying and proposing budgetary revisions. It is also hoped that this model can be used to continuously address fiscal solvency, while maintaining services and profitability.