Methodologies and recommendations for conducting economic impact studies that can be used for single-institution and multi-institution studies are presented. Much of the information and sample questionnaires are drawn from the Pennsylvania Higher Education Economic Impact study, which investigated the collective economic impact in Pennsylvania of its degree-granting colleges and universities on Pennsylvania's economy. Factual data were compiled measuring current annual contributions by colleges to the community, regional, and statewide economies for fiscal year 1979-1980. Information was based on 99 questionnaire responses from 2- and 4-year Pennsylvania colleges and from case studies from 17 institutions regarding the economic impacts on the colleges' communities. Background information on economic relationships of higher education is considered, including state and regional impacts, relationships with government, direct services to business, and returns on educational investment. To conduct an economic impact study, it is necessary to clearly define the scope in terms of the territorial boundaries of the economic area, the institutions or groups of institutions to be included, the time period, methodology for data collection, and questions to be addressed. An outline of research steps, including procedures for compiling and analyzing the data and suggested sources of data, is presented for single institution study or multiple institution study. Specific concerns include impacts of current expenditures for goods and services and impacts of saving, investing, borrowing, and asset ownership. Appended materials include questionnaires, a suggested study report outline, and a bibliography. (SW)