The expenditure impacts of London's higher education institutions: the role of diverse income sources

Kristinn Hermannsson, Katerina Lisenkova, Peter McGregor, John Swales

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5 Citations (Scopus)


This paper analyses the impact of London-based higher education institutions (HEIs) on the English economy. When we treat each of the HEIs as separate sectors in conventional input-output analysis, their expenditure impacts appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of income by source reveals considerable variation in their dependence upon public funding and ability to draw in income/funding from external sources. Acknowledging the possible alternative uses of the public funding and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact with the source of variation being the origin of income. The institutional multiplier is driven by the ability to attract external funding, which would typically favour research-intensive institutions. However, the impacts of students’ consumption expenditures are also significant. In terms of ranking of multipliers the overall results are mixed.
Original languageEnglish
Pages (from-to)1641-1659
Number of pages19
JournalStudies in Higher Education
Issue number9
Early online date4 Jun 2014
Publication statusPublished - 21 Oct 2015


  • expenditure impacts
  • London
  • higher education
  • diverse income sources
  • student consumption

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