This collection of nine papers summarize research on the economics of university functioning including production processes, incentives and governance structures, cost and supply behavior, student attendance demands, and funding environments. The nine papers are: (1) "The Higher Education Production Function: Theoretical Foundations and Empirical Findings" (David S.P. Hopkins); (2) "Organization, Funding, Incentives, and Initiatives for University Research: A University Management Perspective" (Frederick E. Balderston); (3) "Participant Goals, Institutional Goals, and University Resource Allocation Decisions" (Howard P. Tuckman and Cyril F. Chang); (4) "Decision Processes and Priorities in Higher Education" (Estelle James); (5) "Higher Education Cost Functions" (Paul T. Brinkman); (6) "An Economist's Perspective on Costs within Higher Education Institutions" (Stephen A. Hoenack); (7) "The Demand for Higher Education" (William E. Becker); (8) "The Impact of Changing Levels of Financial Resources on the Structure of Colleges and Universities" (Joseph Froomkin); and (9) "College and University Adjustments to a Changing Financial Environment" (Paul T. Brinkman). (Contains references for individual chapters.) (LEE)