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The Expenditure Impacts of Individual Higher Education Institutions and Their Students on the Scottish Economy under a Regional Government Budget Constraint: Homogeneity or Heterogeneity?

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  • Kristinn Hermannsson

    (Fraser of Allander Institute, Department of Economics, University of Strathclyde, 130 Rottenrow, Glasgow G4 0GE, Scotland)

  • Katerina Lisenkova

    (National Institute of Economic and Social Research, 2 Dean Trench Street, London SW1P 3HE, England)

  • Peter G McGregor
  • J Kim Swales

Abstract

Comparing each of the higher education institutions (HEIs) as a separate sector in the Scottish input—output table suggests that their expenditure patterns are homogenous and that any apparent heterogeneity in their conventional demand impacts depends primarily on scale. However, a disaggregation of their income by source reveals a disparity in their degree of dependence upon funding from the devolved Scottish Government. Acknowledging the binding budget constraint of the Scottish Government, and deriving balanced-expenditure multipliers, reveals large differences in the net-expenditure impact of HEIs upon the Scottish economy, with the source of variation being the origin of income. Applying a novel treatment of student expenditure impacts through identifying the amount of exogenous spending per student further increases the heterogeneity of the overall expenditure effects. These issues have particular importance for many governments facing increasing pressure to reduce their overall budgets.

Suggested Citation

  • Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2013. "The Expenditure Impacts of Individual Higher Education Institutions and Their Students on the Scottish Economy under a Regional Government Budget Constraint: Homogeneity or Heterogeneity?," Environment and Planning A, , vol. 45(3), pages 710-727, March.
    • Handle: RePEc:sae:envira:v:45:y:2013:i:3:p:710-727
    DOI: 10.1068/a45233
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    References listed on IDEAS

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    4. Harminder Battu & John Finch, 1998. "Integrating knowledge effects into university impact studies. A case study of Aberdeen University," Working Papers 98-08, Department of Economics, University of Aberdeen.
    5. James A. Giesecke & John R. Madden, 2006. "Cge Evaluation Of A University'S Effects On A Regional Economy: An Integrated Assessment Of Expenditure And Knowledge Impacts," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 18(3), pages 229-251, November.
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    Cited by:

    1. Allan, Grant & Comerford, David & McGregor, Peter, 2019. "The system-wide impact of healthy eating: Assessing emissions and economic impacts at the regional level," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    2. Tian, Jing & Andraded, Celio & Lumbreras, Julio & Guan, Dabo & Wang, Fangzhi & Liao, Hua, 2018. "Integrating Sustainability Into City-level CO2 Accounting: Social Consumption Pattern and Income Distribution," Ecological Economics, Elsevier, vol. 153(C), pages 1-16.
    3. Kristinn Hermannsson & Katerina Lisenkova & Patrizio Lecca & J Kim Swales & Peter G McGregor, 2014. "The Regional Economic Impact of More Graduates in the Labour Market: A ‘Micro-to-Macro’ Analysis for Scotland," Environment and Planning A, , vol. 46(2), pages 471-487, February.
    4. Sánchez-Barrioluengo, Mabel & Benneworth, Paul, 2019. "Is the entrepreneurial university also regionally engaged? Analysing the influence of university's structural configuration on third mission performance," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 206-218.

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