Template-Type: ReDIF-Paper 1.0
Author-Name: Kristinn  Hermannsson
Author-Name-First: Kristinn 
Author-Name-Last: Hermannsson
Author-Email: kristinn.hermannsson@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Peter G McGregor
Author-Name-First: Peter G
Author-Name-Last: McGregor
Author-Email: p.mcgregor@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: J Kim Swales
Author-Name-First: J Kim
Author-Name-Last: Swales
Author-Email: j.k.swales@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: Consumption expenditures in economic impact studies:  an application to university students
Abstract: This paper examines how appropriately to attribute economic impact to consumption
expenditures. Consumption expenditures are often treated as either wholly endogenous or
wholly exogenous, following a distinction from Input-Output analysis. For many applications,
such as those focusing on the impacts of tourism or benefits systems, such binomial
assumptions are not satisfactory. We argue that consumption is neither wholly endogenous
nor wholly exogenous but that the degree of this distinction is rather an empirical matter. We
set out a general model for the treatment of consumption expenditures and illustrate its
application through the case of university students. We examine individual student groups and
how the impacts of students at particular institutions. Furthermore we take into account the
binding budget constraint of public expenditures (as is the case for devolved regions in the UK)
and examine how this affects the impact attributed to students' consumption expenditures.
Length: 24 pages
Creation-Date: 2013-08
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2013/13-14_FINAL.pdf
File-Format: Application/pdf
Number: 1314
Classification-JEL: I23, I25, R12, R15
Keywords: Input-output, Impact, Higher Education, Students, Expenditures
Handle: RePEc:str:wpaper:1314