An alternative system for allocating resources within British universities is proposed which involves (1) a budget for each recognizable academic unit, the size related to the unit's student load by a published formula, and (2) the devolution to units of responsibility for spending their budget on different items. (JT)

Economic student group sizes in universities are analysed from a consideration of student/staff ratios and departmental recurrent cost per student variations. Results show that there can be considerable diseconomies for small student populations and emphasizes the need for economic'' populations at programs of study and department level. (Editor)