IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa10p1595.html
   My bibliography  Save this paper

Regional Impact Analyses and the Appropriate Treatment of Regional Budget Constraints under Devolution: An Application to the Impact of Scottish HEIs

Author

Listed:
  • Kristinn Hermannsson
  • Katerina Lisenkova
  • Peter G McGregor
  • J Kim Swales

Abstract

There have been numerous studies of the "impact" of HEIs on their host regions. These have typically focused on the demand for goods and services in the host region. The best of these studies employ regional input-output analyses. However, there has developed a "policy scepticism" about the value of such analysis based on notions of either demand-side (binding budget constraints) or supply-side (binding resource constraints) "crowding out", to the point where the demand side impact of HEIs is regarded as negligible. In this paper we provide a systematic critique of this policy scepticism. While we reject the extreme form of policy skepticism we do acknowledge the importance of binding public sector budget constraints under devolution, and argue that such constraints should be accommodated in future impact studies. We focus our own impact analysis on the HEI sector's impact net of its public income by simulating the effect of switching public expenditure funds between HEIs and other activities using a modified HEI-disaggregated input-output model of Scotland. The results suggest that conventional impact studies do overestimate the impact of HEIs, but importantly that the policy scepticism that treats the demand-side impact of HEIs neglects some important impacts of these institutions, in particular their export intensity.

Suggested Citation

  • Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2011. "Regional Impact Analyses and the Appropriate Treatment of Regional Budget Constraints under Devolution: An Application to the Impact of Scottish HEIs," ERSA conference papers ersa10p1595, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p1595
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper1595.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "An HEI-Disaggregated Input-Output Table for Scotland," SIRE Discussion Papers 2010-52, Scottish Institute for Research in Economics (SIRE).
    2. Brownrigg, M, 1973. "The Economic Impact of a New University," Scottish Journal of Political Economy, Scottish Economic Society, vol. 20(2), pages 123-139, June.
    3. Christopher Blake & Stuart McDowall, 1967. "A Local Input-Output Table," Scottish Journal of Political Economy, Scottish Economic Society, vol. 14(3), pages 227-242, November.
    4. Learmonth, D. & McGregor, P.G. & Swales, J.K. & Turner, K.R. & Yin, Y.P., 2007. "The importance of the regional/local dimension of sustainable development: An illustrative Computable General Equilibrium analysis of the Jersey economy," Economic Modelling, Elsevier, vol. 24(1), pages 15-41, January.
    5. Linda Ferguson & David Learmonth & Peter G McGregor & J Kim Swales & Karen Turner, 2007. "The Impact of the Barnett Formula on the Scottish Economy: Endogenous Population and Variable Formula Proportions," Environment and Planning A, , vol. 39(12), pages 3008-3027, December.
    6. Peter G. McGregor & J. Kim Swales & Ya Ping Yin, 1999. "Spillover and Feedback Effects in General Equilibrium Interregional Models of the National Economy: A Requiem for Interregional Input-Output?," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & Moss Madden & Yoshio Kimura (ed.), Understanding and Interpreting Economic Structure, chapter 9, pages 167-190, Springer.
    7. Harminder Battu & John Finch, 1998. "Integrating knowledge effects into university impact studies. A case study of Aberdeen University," Working Papers 98-08, Department of Economics, University of Aberdeen.
    8. Unknown, 2005. "Forward," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183804, Slovenian Association of Agricultural Economists (DAES).
    9. Richard I. D. Harris, 1997. "The Impact of the University of Portsmouth on the Local Economy," Urban Studies, Urban Studies Journal Limited, vol. 34(4), pages 605-626, April.
    10. Jan Oosterhaven & Dirk Stelder, 2002. "Net Multipliers Avoid Exaggerating Impacts: With A Bi–Regional Illustration for the Dutch Transportation Sector," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 533-543, August.
    11. Harvey W. Armstrong, 1993. "The Local Income and Employment Impact of Lancaster University," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1653-1668, December.
    12. Peter Mcgregor & Kim Swales, 2005. "Economics of devolution/decentralization in the UK: Some questions and answers," Regional Studies, Taylor & Francis Journals, vol. 39(4), pages 477-494.
    13. Scott Loveridge, 2004. "A Typology and Assessment of Multi-sector Regional Economic Impact Models," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 305-317.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kristinn Hermannsson & Katerina Lisenkova & Peter G. McGregor & J. Kim Swales, 2014. "'Policy Scepticism' and the Impact of Scottish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints under Devolution," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 400-417, February.
    2. Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Welsh Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-72, Scottish Institute for Research in Economics (SIRE).
    3. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-78, Scottish Institute for Research in Economics (SIRE).
    4. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of London-based Higher Education Institutions (HEIs) on the economy of England: Accounting for Alternative Uses of Public Expenditure," SIRE Discussion Papers 2010-97, Scottish Institute for Research in Economics (SIRE).
    5. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of London-based Individual Higher Education Institutions (HEIs) and their Students on the Economy of England: Homogeneity or Heterogeneity?," Working Papers 1030, University of Strathclyde Business School, Department of Economics.
    6. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Scottish Economy under Devolution: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-64, Scottish Institute for Research in Economics (SIRE).
    7. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Welsh Economy: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-88, Scottish Institute for Research in Economics (SIRE).
    8. Kristinn Hermannsson & Peter G McGregor & J Kim Swales, 2013. "Consumption expenditures in economic impact studies: an application to university students," Working Papers 1314, University of Strathclyde Business School, Department of Economics.
    9. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2011. "The Expendi ture Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Northern Irish Economy: Homogeneity or Heterogeneity?," Working Papers 1103, University of Strathclyde Business School, Department of Economics.
    10. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "An HEI-Disaggregated Input-Output Table for Wales," Working Papers 1021, University of Strathclyde Business School, Department of Economics.
    11. Kristinn Hermannsson, 2015. "Expenditure and Displacement effects of Students in the Periphery: Impact on the Scottish Highlands and Islands," ERSA conference papers ersa15p1601, European Regional Science Association.
    12. Hermannsson, Kristinn & Lisenkova, Katerina & Lecca, Patrizio & McGregor, Peter G & Swales, J Kim, 2010. "The Importance of Graduates for the Scottish Economy: A Micro-to-Macro Approach," SIRE Discussion Papers 2010-80, Scottish Institute for Research in Economics (SIRE).
    13. Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2013. "The Expenditure Impacts of Individual Higher Education Institutions and Their Students on the Scottish Economy under a Regional Government Budget Constraint: Homogeneity or Heterogeneity?," Environment and Planning A, , vol. 45(3), pages 710-727, March.
    14. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G., 2010. "An HEI-Disaggregated Input-Output Table for Northern-Ireland," SIRE Discussion Papers 2010-76, Scottish Institute for Research in Economics (SIRE).
    15. Claire Robinson & Neil Adams, 2008. "Unlocking the Potential: The Role of Universities in Pursuing Regeneration and Promoting Sustainable Communities," Local Economy, London South Bank University, vol. 23(4), pages 277-289, November.
    16. Sue Cox & Jim Taylor, 2006. "The Impact of a Business School on Regional Economic Development: a Case Study," Local Economy, London South Bank University, vol. 21(2), pages 117-135, May.
    17. Sergio P. Santos & Joao A. Silva, 2000. "Using Input-output Analysis to Estimate the Regional Economic Impact of Universities: a Case Study," Regional and Urban Modeling 283600083, EcoMod.
    18. Kristinn Hermannsson & Katerina Lisenkova & Patrizio Lecca & J Kim Swales & Peter G McGregor, 2014. "The Regional Economic Impact of More Graduates in the Labour Market: A ‘Micro-to-Macro’ Analysis for Scotland," Environment and Planning A, , vol. 46(2), pages 471-487, February.
    19. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "An HEI-Disaggregated Input-Output Table for Scotland," SIRE Discussion Papers 2010-52, Scottish Institute for Research in Economics (SIRE).
    20. Andrew Dyck & U. Sumaila, 2010. "Economic impact of ocean fish populations in the global fishery," Journal of Bioeconomics, Springer, vol. 12(3), pages 227-243, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p1595. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.