How to Measure the Local Economic Impact of Universities? Methodological Overview

EconPapers 7: Paper (2017)

17 Pages Posted: 24 Aug 2017 Last revised: 5 Oct 2018

See all articles by Balázs Kotosz

Balázs Kotosz

University of Szeged

Miklós Lukovics

University of Szeged

Gabriella Molnar

University of Szeged

Bence Zuti

University of Szeged, Doctoral School of Economics

Date Written: July 25, 2017

Abstract

Today, the realization that certain economic units, such as universities or other large tertiary educational institutions have an impact on the economy of their region has gained prominence. There is a growing demand for precise studies on the economic impact of such entities, and the issue has attracted considerable attention in the scientific community. The examination of their economic impact is especially interesting when we compare regions with different levels of development, characterized by a successful international university. The different methods used in the literature render comparisons difficult; therefore, our focus is to recommend a method for investigating universities in different countries. In the absence of regional input-output matrices, a multiplier based approach is suggested for the first and second mission (education and research), while the application of a set of indicators is recommended for the third mission (knowledge transfer-related). There are several substantial problems in assessing the economic impact of universities. First, the definition of impact; second, measuring and estimating first round expenditures and avoiding double counting; third, estimating the model parameters (e.g. multipliers); fourth, the quantification of third mission activities. In this paper, we clarify theoretical definitions, resolve some contradictions, and consequently, recommend a feasible method considering the circumstances in Hungary.

Keywords: Impact Study, University, Hungary

JEL Classification: I23, O31, R11, C18, D80, I20, I25, M10, M20, O18, O20, O30, O32, O35, O40, P25, P48, R10, R50, R58

Suggested Citation

Kotosz, Balázs and Lukovics, Miklós and Molnar, Gabriella and Zuti, Bence, How to Measure the Local Economic Impact of Universities? Methodological Overview (July 25, 2017). EconPapers 7: Paper (2017). Available at SSRN: https://ssrn.com/abstract=3022568

Balázs Kotosz

University of Szeged ( email )

P.O. Box 652
Szeged, H-6701
Hungary

Miklós Lukovics

University of Szeged ( email )

P.O. Box 652
Szeged, H-6701
Hungary

Gabriella Molnar

University of Szeged ( email )

P.O. Box 652
Szeged, H-6701
Hungary

Bence Zuti (Contact Author)

University of Szeged, Doctoral School of Economics ( email )

Dugonics tér 13
Szeged, Csongrád 6720
Hungary
(+36-62) 544-000 (Phone)
(+36-62) 546-371 (Fax)

HOME PAGE: http://bencezuti.academia.edu/

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