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Estimating the Local Economic Impacts of University Activity Using a Bill of Goods Approach

Author

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  • Zoë O. Ambargis
  • Thomas McComb
  • Carol A. Robbins

    (Bureau of Economic Analysis)

Abstract

Economic impact analyses for universities often produce impacts so large that they are viewed with suspicion. Using data collected from universities on actual expenditures as well as the local share of these expenditures to calibrate and regionalize custom economic impact multipliers will produce better results. We compare these economic impacts to those obtained using an “off-the-shelf” multiplier for universities from BEA’s Regional Input-Output Modeling System (RIMS II). We find that results are sensitive to initial assumptions about the study region and the scope of university economic activity. Finally, we use these results and our knowledge of the model to provide recommendations to improve the usefulness and reliability of multiplier-based estimates of the economic impact of universities.

Suggested Citation

  • Zoë O. Ambargis & Thomas McComb & Carol A. Robbins, 2011. "Estimating the Local Economic Impacts of University Activity Using a Bill of Goods Approach," BEA Working Papers 0074, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0074
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    References listed on IDEAS

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    1. Thomas Lemieux, 2006. "Postsecondary Education and Increasing Wage Inequality," American Economic Review, American Economic Association, vol. 96(2), pages 195-199, May.
    2. Siegfried, John J. & Sanderson, Allen R. & McHenry, Peter, 2007. "The economic impact of colleges and universities," Economics of Education Review, Elsevier, vol. 26(5), pages 546-558, October.
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    Cited by:

    1. John KAGOCHI & Mostafa MALKI & David SUMMERS, 2015. "The Economic Contributions Of Higher Institutions Of Learning To Regional Communities: The Case Of University Of Houston-Victoria," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 15(1), pages 25-34.

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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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