Local economic impact of Nigde University: an estimation under the true inflation effect

• Published in: Academic review of economics and administrative sciences 2014-01, Vol.7 (2), p.17-37
• Main Authors: Mavruk, Can, Ilker Tekinarslan, Ali, Gürün, Murat, Ayis Akkurt, Ayse
• Format: Article
• Language: Turkish
• Subjects: Economic impact analysis; Economics of education; Employment; Expenditure; Inflation; Nigde; Turkey; Universities
• ISSN: 1308-4208

// ABSTRACT IN ENGLISH: Local economic and employment impact of Nigde University was estimated for the 2012-2013 fiscal year by using three methods: Keynesian multiplier method, Ryan short cut method and the survey method. University budget expenditures data, national statistical data resources and survey data were used in this study. The Keynesian income multiplier was estimated to be 1.22. Marginal propensity to consume, a key factor in estimating economic impact, was estimated 0.70 in a short run model via E-views. This paper shows the local economic importance of the University by estimating total local income and employment, and finds that the University is a driving force for local economy. This paper provides calculations, including the true inflation effect, which gives a better estimate of local economic impact. It suggests that the income multiplier is small under the inflation effect, in addition to other effects. The total local impact of the University was estimated by adding gross local outputs, by multiplying the sum of direct and indirect impacts by income multiplier and by multiplying direct impact by income multiplier, respectively. Local employment impact was estimated by multiplying local expenses related to the University by employment factor, and results were compared.