The Economic Value of WTAMU Main Report

the per-student cost of personal expenses, transportation, and off-campus food
purchases (assumed to be equal to 25% of room and board) by the number of
students who lived in the region but on campus while attending (1,107 students).
Altogether, off-campus spending of relocated and retained students generated
gross sales of $25.4 million. This figure, once net of the monies paid to
student workers, yields net off-campus sales of $24.3 million, as shown in the
bottom row of Table 2.8.
Estimating the impacts generated by the $24.3 million in student spending
follows a procedure similar to that of the operations impact described above.
We distribute the $24.3 million in sales to the industry sectors of the MR-SAM
model, apply RPCs to reflect in-region spending, and run the net sales figures
through the MR-SAM model to derive multiplier effects.
Table 2.9 presents the results. The initial effect is purely sales-oriented and
there is no change in labor or non-labor income. The impact of relocated and
retained student spending thus falls entirely under the multiplier effect. The
total impact of student spending is $8.8
million in labor income and $4.4 million in
non-labor income. This sums together to
$13.2 million in total added income and is
equivalent to supporting 315 jobs. These
values represent the direct effects created
at the businesses patronized by the students,
the indirect effects created by the
supply chain of those businesses, and the
effects of the increased spending of the household sector throughout the
regional economy as a result of the direct and indirect effects.
The total impact of student spending is
$13.2 million in total added income and is
equivalent to supporting 315 jobs.
TABLE 2.9: STUDENT SPENDING IMPACT, FY 2017-18
Labor income
(thousands)
Non-labor income
(thousands)
Total income
(thousands)
Sales
(thousands)
Jobs supported
Initial effect $0 $0 $0 $24,322 0
Multiplier effect
Direct effect $5,785 $2,915 $8,700 $15,329 207
Indirect effect $1,175 $605 $1,780 $3,245 45
Induced effect $1,829 $901 $2,730 $4,734 64
Total multiplier effect $8,789 $4,421 $13,210 $23,308 315
Total impact (initial + multiplier) $8,789 $4,421 $13,210 $47,630 315
Source: Emsi impact model.
Chapter 2: Economic Impacts on the Texas Panhandle Economy 36