Measuring the local economic impact of universities: an approach that considers uncertainty
In: Investigaciones de Economía de la Educación 5
AbstractThe contribution of universities to society is due to both supply and demand side effects, the latter being associated with the injection of demand as a result of the activities these institutions carry out. This paper focuses on the impact of the demand side by designing a methodology based on Monte Carlo simulations so as to introduce stochastic elements in calculating the economic impact of universities. We apply this methodology to the case of Valencian state universities, introducing stochastic elements in all the elements which imply assumptions with uncertainty. The results highlight the importance of considering uncertainty by generating multipliers which can vary around the average value by 18% in the case of output and employment, and 10% in the case of income.
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This item is provided by Asociación de Economía de la Educación in its series Investigaciones de Economía de la Educación volume 5 with number 05-54.
Impact; Uncertainty; Universities; Input-output analysis; Monte Carlo;
Find related papers by JEL classification:
- H4 - Public Economics - - Publicly Provided Goods
- I23 - Health, Education, and Welfare - - Education - - - Higher Education and Research Institutions
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
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Vanderbilt University Department of Economics Working Papers
0612, Vanderbilt University Department of Economics.
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