The Local Economic Impact of a Large Research University: Evidence from UC Merced
36 Pages Posted: 22 Feb 2018 Last revised: 5 Jul 2019
Date Written: September 12, 2018
In this paper, I estimate the short-run economic effects of the opening of The University of California, Merced in 2005 by comparing Merced with a counterfactual constructed by the synthetic control method. During the period 2005-2014, the opening of the campus has increased local employment by 13%, mainly in non-traded industries, such as the service sector. These findings suggest that a large research university could bring immediate benefits to the local economy because of its large demand from students and employees.
Keywords: University; Local Development; UC Merced; Synthetic Control Method
JEL Classification: J24, O18, R11
Suggested Citation: Suggested Citation