Four areas of college and university characteristics relevant to the broad policy concerns of the Title III "Developing Institutions" program are identified in this research study. They are: (1) the structural development of colleges and universities; (2) the levels of various collegiate activities, such as the number of students, faculty, library volumes, or terminal degree recipients on the faculty; (3) the relative efficiency with which colleges and universities provide instruction and, where appropriate, public service and research; and (4) the determinants of student demand with a special focus on those institutional actions affecting individuals' college-going choices. This study grew out of two general concerns: how to conceptualize developmental sequences for higher education institutions and how effective is federal aid in accomplishing national objectives, such as student access and choice, program and institutional diversity, and institutional growth and survival. Focus is on the effects of Title III funds on colleges and universities. Only existing data bases, historical documents about Title III, and literature on institutional development and institutional resources use are considered in the study. Related topics are treated in separate appendices. (LBH)