There is increasing pressure on higher education to document results and to rationalize them
within specific budgetary constraints. At margin, how much can universities influence the
productivity of faculty through budgetary allocations? Are allocations for senior faculty more
or less productive than for junior faculty, and in which sectors of performance — teaching,
research, or services to the university and the community? A methodology is presented for
analyzing faculty productivity and costs at the level of a department or school. Its application
provides mixed support for the notion that university administrators can use annual budget
decisions to influence faculty productivity and costs.