The increasing complexity of educational operations make analytical tools, such as computer simulation models, especially desirable for educational administrators. This MA thesis examined the feasibility of developing computer simulation models of economic systems in higher education to assist decision makers in allocating resources. The report discusses: the relationship of the systems approach to the decision making process; the design of computer simulation models; and the development of a model consisting of mathematical equations and logical flow charts to depict an economic system in a university department. Since the model can be used to establish costs for programs in a department, it should become an integral part of a program budget analysis. Although the writing of a computer program and validation of the model have yet to be accomplished, the project was successful in designing a significant administrative tool. (JS)