The paper is in three parts: 1. Background; demography of student numbers and age distribution of faculty in the 80s and 90s; the dual support system for academic research by the University Grants (Funding) Committee (Council) and Research Councils, the funding formula; Economic and Social Research Council sanctions on departments too few of whose doctoral students submit on time. 2. UGC/UFC subject reviews and research rating exercises. Criticisms of correlation of assessed quality with departmental scale; difficulties of mixing input and output indices; bibliometrics and the apparent weighting of prestige journals; the role of consultation with learned societies such as the Royal Economic Society. 3. Incentive issues and their transmission to individuals. The balance between pure and applied research. © 1991.