Research councils monitor where money goes and evaluate research projects
Publishers have databases of authors and citations
The REF then centrally datawarehouses these sources, adds in various weighting factors, creating a score for individuals, which is aggregated for the institution to give their REF evaluation (maybe by subject or maybe across a whole institution).
It uses proxies for research quality, and is focused on research funding and formal publications, but hey, so is the current REF. If we're going to be forced to play that game, then couldn't we at least do it in an efficient manner? It would at least free up a lot of time to you know, actually do research."
http://nogoodreason.typepad.co.uk/no_good_reason/2011/04/a-quick-and-dirty-ref.html
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