Abstract
depending on their sensitivity to public funding. However, predicting the outcome of budget cutbacks at the margin is problematic for reasons that we identify.
Language | English |
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Number of pages | 45 |
Publication status | Published - Nov 2010 |
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Keywords
- Higher Education Institutions
- Wales
- input output
- impact study
- multipliers
- devoution
Cite this
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The expenditure impacts of individual higher education institutions (HEIS) and their students on the Welsh economy : homogeneity or heterogeneity? . / Hermannsson, Kristinn; Lisenkova, Katerina; McGregor, Peter; Swales, John.
2010.Research output: Working paper › Discussion paper
TY - UNPB
T1 - The expenditure impacts of individual higher education institutions (HEIS) and their students on the Welsh economy
T2 - homogeneity or heterogeneity?
AU - Hermannsson, Kristinn
AU - Lisenkova, Katerina
AU - McGregor, Peter
AU - Swales, John
PY - 2010/11
Y1 - 2010/11
N2 - This paper replicates the analysis of Scottish HEIs in Hermannsson et al (2010a) for the case of Wales in order to provide a self-contained analysis that is readily accessible by those whose primary concern is with the regional impacts of Welsh HEIs. When we treat each of the twelve Higher Education Institutions (HEIs) that existed in Wales in 2006 as separate sectors in conventional input-output analysis, their expenditure impacts per unit of final demand appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of their income by source reveals considerable variation in their dependence upon funding from the devolved Welsh Assembly Government and their ability to draw in income/funding from external sources. Acknowledging the binding budget constraint of the Welsh Assembly Government and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact of HEIs upon the Welsh economy, with the source of variation being the origin of income. Applying a novel treatment of student expenditure impacts, identifying the amount of exogenous spending per student, modifies the heterogeneity of the overall expenditure impacts. On balance this suggests that the impacts of impending budget cut-backs will be quite different by institution depending on their sensitivity to public funding. However, predicting the outcome of budget cutbacks at the margin is problematic for reasons that we identify.
AB - This paper replicates the analysis of Scottish HEIs in Hermannsson et al (2010a) for the case of Wales in order to provide a self-contained analysis that is readily accessible by those whose primary concern is with the regional impacts of Welsh HEIs. When we treat each of the twelve Higher Education Institutions (HEIs) that existed in Wales in 2006 as separate sectors in conventional input-output analysis, their expenditure impacts per unit of final demand appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of their income by source reveals considerable variation in their dependence upon funding from the devolved Welsh Assembly Government and their ability to draw in income/funding from external sources. Acknowledging the binding budget constraint of the Welsh Assembly Government and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact of HEIs upon the Welsh economy, with the source of variation being the origin of income. Applying a novel treatment of student expenditure impacts, identifying the amount of exogenous spending per student, modifies the heterogeneity of the overall expenditure impacts. On balance this suggests that the impacts of impending budget cut-backs will be quite different by institution depending on their sensitivity to public funding. However, predicting the outcome of budget cutbacks at the margin is problematic for reasons that we identify.
KW - Higher Education Institutions
KW - Wales
KW - input output
KW - impact study
KW - multipliers
KW - devoution
UR - http://www.strath.ac.uk/economics/
M3 - Discussion paper
BT - The expenditure impacts of individual higher education institutions (HEIS) and their students on the Welsh economy
ER -