Proceedings from a conference on the economics of higher education are presented. Following an introduction by Henry Wasser and opening remarks by Mina Rees, a paper by Gareth Williams is presented. In "The Buffer Under Pressure: An Examination of the British System of Financing Higher Education in Periods of Affluence and Stringency," it is concluded that channelling funds may be a more efficient and socially equitable way of deciding which institutions will prosper and which decline than a block system that treats all institutions in some sense equally. Comments by Harold Noah and Estelle James are presented. Ulrich Teichler's paper, "Higher Education and Employment in the Federal Republic of Germany: Trends and Changing Research Approaches from the Comparative Point of View," suggests that constant reflection on research trends is essential and would accord special attention to those research approaches that deliberately place national preoccupations and biases in question and suggests that comparative research is perhaps the more important approach. Comments by Herman A. Berliner, Thomas Prapas, and Barry Bressler are presented. Howard Bowen in "Institutional Costs in American Higher Education: Past Trends and Future Prospects," foresees the possibility that results on the benefit side of the cost-benefit equation in higher education might be achieved at lesser cost. Bowen is optimistic about the ability of higher education to keep its costs steady for periods of time. Comments by Robert Payton and Harold Hochman are included. (SW)