Program diversity in higher education: an economic perspective David D. Dill*, Pedro Teixeira University of North Carolina, Chapel Hill, Abernethy Hall, Chapel Hill, NC 27599-3435, USA Abstract Program diversity in academic systems has become an important goal of higher education policy in many countries. Policy makers assume that a diverse academic system will better satisfy public preferences and needs and lead to greater social and economic bene®ts for society. While these assumptions adopt a recognizably economic perspective, very little of the literature on program diversity in higher education applies economic theory or methods as a means of framing relevant research. The article suggests that an economic perspective would de®ne and measure academic diversity in terms of program innovation in academic institutions, not only in teaching, research and public service activities, but also in the processes of production and markets served. An economic perspective can also provide valuable theoretical frameworks for exploring the important question as to whether and how markets or governments aect program innovation in higher education. # 2000 International Association of Universities. Published by Elsevier Science Ltd. All rights reserved. 1. Introduction Diversity in higher education has recently emerged as an important topic of research (Huisman, 1998). In the US particularly the term ``diversity'' is most often applied to concerns about the human inputs to higher education: diversity among students, sta or faculty members, particularly in terms of gender, or race 0952-8733/00/$20.00 # 2000 International Association of Universities. Published by Elsevier Science Ltd. All rights reserved. PII: S0952-8733(99)00026-4 Higher Education Policy 13 (2000) 99±117 www.elsevier.com/locate/highedpol * Corresponding author. Tel.: +1-919-962-6848; fax: +1-919-962-5824. E-mail address: david_dill@unc.edu (D.D. Dill).