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economic output


Endnotes

i For this analysis, we choose to adopt what is called the "likely substitution" rule, meaning that we employ two decision rules when deciding which expenditures to include. First, expenditures are included if it is assumed that they would be expended outside the boundaries of the University, but within New York State. Second, we include such expenditures if it is reasonable to argue that such expenditures would not easily be substituted by other expenditures. See: John W. Siegfried, Allen R. Sniderman & Peter McHenry, "The economic impact of colleges and universities," Change, March/April, 2008, pp. 25-29.

ii IPEDS F1B Survey, FY 2010-11.

iii SUNY Construction Fund (SUCF) report sent to Binghamton University's Office of Institutional Research & Assessment, December 2011; Dormitory Authority of the State of New York (DASNY) report sent to Office of Institutional Research & Assessment, December 2011.

iv See "An analysis of Binghamton University's off-campus and non-permanent population: Model choice and economic impact, July 2009," Brenden McGovern, lead author, Binghamton University Geography Department.

v Visitor expenditures are calculated by contacting various offices on campus and asking them for estimates of how many visitors attended events and conferences on campus. We then calculate the percentage of those we feel came far enough out of town to require a hotel room (usually no more than 10-15%). As is our practice, we use lower bound estimates.

vi RIMS II multipliers downloaded from the Bureau of Economic Analysis and are available from the Office of Institutional Research & Assessment. See also Zoe O. Ambargis and Rebecca Bess, "RIMS II workshop."

vii Direct expenditure data is taken from IPEDS form F1B for the time period of July 1, 2010 to June 30, 2011.

viii The Bureau of Economic Analysis estimates the impact of spending outside the Binghamton University area based on separate multipliers for the Binghamton Metropolitan Statistical Area (Binghamton MSA), which includes Broome and Tioga counties, and for New York State. These multipliers can be used to estimate an overall economic impact, including spending that occurs
beyond a core economic area (in this case, spending within the geographic confines of Binghamton University). Such calculations also estimate the economic effects in both directions— the positive impact and the negative impact
(what would happen in such spending were to suddenly disappear). For the Binghamton MSA, the "colleges, universities, and junior colleges" sub-item multiplier (under the general category "educational services") is 1.55, meaning that for every one dollar in direct and indirect spending associated with Binghamton University, the Binghamton MSA incurs an additional economic impact, in the form of dollars of economic output, of $0.55. In addition, the RIMS II multiplier for New York State for educational services is 2.064, meaning that every dollar of direct and indirect spending associated with the university produces an additional $1.064 of economic output.

ix The economic multiplier used for this study does not differentiate between part- and full-time jobs.

x Alumni information was provided by Binghamton University Alumni Relations Office and their website.

xi Regions are consistent with the Regional Economic Development Council regions established by Governor Cuomo in 2011.

xii See "Binghamton University Economic Impact Analysis, 2008-09," Office of Institutional Research and Assessment, Binghamton University. We adopt a conservative estimate of alumni earnings by multiplying the total number of identified Binghamton University alumni by 85%, assuming that 10% are not working, and 5% are unemployed. We then take this number (45,732) and multiply it by a conservative
estimate of average earnings ($45,000) per employed alumnus. This number is then multiplied by 3.2% average state (and other) taxes as a percentage of income and 2% in average state income taxes as a percentage of state income. 

xiii In 2010, the Office of Institutional Research & Assessment obtained the zip code information of all Binghamton alumni, and then created a file that enabled the office of plot zip codes on US and New York maps using SAS ©.

xiv In order to produce this table, we accessed the student record system available at the Office of Institutional Research & Assessment, and took tallies of students registered for clinical and practicum courses. We also used data recently provided by the the office of Community and
Civic Engagement to estimate how many students engaged in volunteer service via a service-learning course during FY2011.

Report on the economic impact of Binghamton University (361kb .pdf)

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Last Updated: 7/22/13