APPENDIX 3: FREQUENTLY ASKED QUESTIONS (FAQs)
APPENDICES
This appendix provides answers to some frequently asked questions about the results.
What is economic impact analysis? Economic impact analysis quantifies the impact from a given economic event—in this case, the presence of a university—on the economy of a specified region.
What is investment analysis? Investment analysis is a standard method for determining whether or not an existing or proposed investment is economically viable. This methodology is appropriate in situations where a stakeholder puts up a certain amount of money with the expectation of receiving benefits in return, where the benefits that the stakeholder receives are distributed over time, and where a discount rate must be applied in order to account for the time value of money.
Do the results differ by region, and if so, why? Yes. Regional economic data are drawn from Emsi’s proprietary MR-SAM model, the Census Bureau, and other sources to reflect the specific earnings levels, jobs numbers, unemployment rates, population demographics, and other key characteristics of the region served by the university. Therefore, model results for the university are specific to the given region.
Are the funds transferred to the university increasing in value, or simply being re-directed? Emsi’s approach is not a simple “rearranging of the furniture” where the impact of operations spending is essentially a restatement of the level of funding received by the university. Rather, it is an impact assessment of the additional income created in the region as a result of the university spending on payroll and other non-pay expenditures, net of any impacts that would have occurred anyway if the university did not exist.
Appendix 3: Frequently asked questions (FAQs)
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