The scope of higher education research has expanded substantially, encompassing many branches of economics studies. This chapter examines the contribution of economics to the study of higher education by tracing the development of theoretical frameworks and exploring key issues and perspectives relevant to major stakeholders. It discusses the methodological challenges and examines two perspectives that have dominated the field: the neoclassical approach and behavioral economics. This chapter also highlights several limitations of current approaches and discusses implications for future research in the economics of higher education.