Measuring the economic impact of institutions of higher education

Frequently institutions of higher education commission formal studies to measure their short-term economic impact on the surrounding regions. The purpose of this paper is to identify and discuss several of the methodological considerations which arise in the design and use of economic impact studies, as well as to present new evidence regarding the effectiveness of alternative survey methods for collecting the personal expenditure data frequently used in such studies. The survey results suggest that mail surveys may yield more accurate responses regarding important personal financial information than more costly telephone interviews. This paper also offers some guidance in the design of economic impact studies and points out some of the increasing pressures to integrate studies of short-term economic impacts with analysis of higher education's impact on long-term regional economic development.An earlier version of this paper was presented at the meetings of the Western Economic Association, Vancouver, British Columbia, Canada, July 1987.