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ERIC Number: ED385299
Record Type: Non-Journal
Publication Date: 1995-May-29
Pages: 27
Abstractor: N/A
Reference Count: N/A
Using a Simple Economic Impact Model To Document Value to Policy Makers.
Lillibridge, Fred
At the request of state legislature, the two-year branch campus of New Mexico State University at Alamogordo (NMSU-A) began using an economic impact model developed by the Eastern Association of College and University Business Officers (EACUBO) to document accountability. The EACUBO Model uses information about the institution and economic data from the local study area to produce countywide data for the college; statewide data for the college; and countywide results of economic impact. The model requires that two multipliers be selected: the first to estimate local college indirect impact; and an employment multiplier which reflects the number of jobs related to the institution. In summer 1993, NMSU-A utilized the EACUBO model to determine the economic impact on Otero county of NMSU-A and four other public educational systems. The total direct economic impact was calculated to be $24,521,994, while economic impact after adding the multiplier was calculated at $51,011,893. The total economic impact of NMSU-A was determined to be $14,411,190, with students providing 72% of the impact. The total number of jobs created due to the 5 institutions was 1,154, with 372 of these resulting directly from NMSU-A. However, exclusions from the model of such factors as expansion of the credit base of local banks due to college-related deposits, expenditures by visitors, and state and local taxes paid by employees result in an underestimation of the actual economic impact. (Contains 10 references.) (Data tables are appended.) (KP)
Publication Type: Reports - Descriptive; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A