The expenditure impacts of London's Higher Education Institutions: the role of diverse income sources

Hermannsson, K. , Lisenkova, K., McGregor, P. and Swales, J. K. (2015) The expenditure impacts of London's Higher Education Institutions: the role of diverse income sources. Studies in Higher Education, 40(9), pp. 1641-1659. (doi: 10.1080/03075079.2014.899338)

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This paper analyses the impact of London-based Higher Education Institutions (HEIs) on the English economy. When we treat each of the HEIs as separate sectors in conventional input-output analysis, their expenditure impacts appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of income by source reveals considerable variation in their dependence upon public funding and ability to draw in income/funding from external sources. Acknowledging the possible alternative uses of the public funding and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact with the source of variation being the origin of income. The institutional multiplier is driven by the ability to attract external funding, which would typically favour research intensive institutions. However, the impacts of students' consumption expenditures are also significant. In terms of ranking of multipliers the overall results are mixed.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Hermannsson, Professor Kristinn
Authors: Hermannsson, K., Lisenkova, K., McGregor, P., and Swales, J. K.
Subjects:H Social Sciences > HJ Public Finance
L Education > L Education (General)
College/School:College of Social Sciences > School of Education
College of Social Sciences > School of Education > Educational Leadership & Policy
Journal Name:Studies in Higher Education
Publisher:Taylor & Francis
ISSN (Online):1470-174X
Copyright Holders:Copyright © 2014 Society for Research into Higher Education
First Published:First published in Studies in Higher Education 40(9):1641-1659
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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Project CodeAward NoProject NamePrincipal InvestigatorFunder's NameFunder RefLead Dept
464781The overall impact of HEIs on regional economies in the UK.Richard HarrisEconomic & Social Research Council (ESRC)RES-171-25-0032BUS - ECONOMICS