But that conservatism may be exactly theproblem. As the humming stock market has allowedother universities to spend freely to strengthencertain academic areas, some in the Faculty feelthe University is being too stingy with itsenormous nest egg.

Some professors feel the University works themtoo hard and provides too little monetary supportfor research.

Consequently, other institutions hope that byconcentrating their resources on a particular areaof department, they can attract top scholars witha more blatantly uneven--and generous--system.

Two recent cases provide ample evidence of thepower of well-placed funding.

First, there is the New York University (NYU)School of Law, which in the space of a decade wentfrom mediocre to top-tier using aggressiveacademic perks and programs.

And, much more frightening for the University,there is the American track of the Harvardgovernment department, in which professors unhappywith the University's "hoarding" are being preyedon by a selectively-generous Stanford.

NYU Law: A Quick Move to the Top

If Barro is the Mercenary Professor, then Deanof New York University (NYU) Law School JohnSexton is the man who shows them the money.

In 1988, Sexton took over a middle-of-the-packlaw school that had played second fiddle tointracity rival Columbia for its entire history.After a decade of academic pump-priming, theschool now hovers among the nation's elite.

Sexton inherited a sizable war chest and didimpressive fund-raising on his own. But ratherthan locking up the loot, he gave the key to starprofessors--without a large hike in salaries--byexpanding prominent programs for legalscholarships.

To suggest that stars negotiate bigger andbetter deals with NYU might even insult Sexton. Hesimply asks them for an academic wish list.

"Your job is to tell me what will make it workfor you, and my job is to make it happen if it isall within my power," he reportedly told afree-agent professor. "We are not in a negotiatingsituation here."

What sets Sexton and NYU apart from the pack isthe willingness to spend as freely as their donorsgive.

That generosity has paid great dividends, oftento the detriment of traditionally more prestigiousschools--like Chicago, Stanford and Harvard--fromwhom NYU has plucked away prominent professors inrecent years.

Richard Stewart, a nationally renowned expertin environmental law, left Harvard in 1992 forgreener, if not richer, pastures at NYU.