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In 2006 Barton Smith, Houston’s most respected economic forecaster, led a study designed to determine the University of Houston System’s impact on Houston’s economy and community. His findings were startling – even to him.

The Economic Impact of Higher Education on Houston: A Case Study of the University of Houston System

Headed by Dr. Smith, the Institute for Regional Forecasting is a source of the most up-to-date information on factors affecting Houston’s economy. Its recent study cites numbers compiled by totaling the combined impact of the three Houston-based UH System universities – University of Houston, UH-Clear Lake, and UH-Downtown.

Download Study (1.3 MB)

Introduction

  • The Primary Mandate Of A Local University
    • Educating the Populace
    • Enhancing a Region’s Human Capital
  • The Spillover Benefits From Research Oriented Local Universities
    • Synergism of Research
    • Community Service

Measuring the Impact of Local Universities

  • The Nature Of Impact Analysis
    • Economic Stimulus from “Outside” Spending
    • With/Without Perspective
  • The Economics Models For Impact Analysis
    • The Need for Modeling
    • The Economists’ Choice: Input/Output Models
  • Basics Of The Standard Demand-Side Approach
    • Identifying Exogenous Spending
    • The Multiplier Effect

Impacts of the University of Houston System

  • Looking Beyond The University Of Houston System’s Budget
    • The Direct and Indirect Impacts
    • The Exogenous Component of University of Houston Related Spending
    • Import Substitution
  • The Region Without The University Of Houston System
  • Choosing The Most Appropriate Input-Output Model

Looking at Supply-Side Impact

  • The Distinguishing Nature Of Supply-Side Impacts
    • Enhancing a Region’s Comparative Advantages
    • The Supply-Side Impact Literature
    • What Can Be Done
  • The Supply-Side Impacts Of The University Of Houston System
    • The University’s Mandate
    • The Exogenous Component of University of Houston Related Spending

The Empirical Results of This Study

  • Demand-Side Analysis
    • Past Studies
    • Identifying Exogenous Spending Related to UH System Activities
    • Exogenous Spending Totals
    • The Total Effects of Exogenous Spending Related to UH System
    • Activities
    • The Relative Importance of the UH System Stimulus
    • UH-Victoria Impact
    • The Distribution of Gains
    • Fiscal Dividends to State and Local Government
    • Summary of the Demand-Side Effects
  • Supply-Side Considerations
    • Educating the Local Populace/Enhancing the Stock of Local Human Capital
    • Houston’s Labor Force Falls Short
    • UH System’s Contribution to Regional Human Capital
    • Filling the Education Short-Fall
    • The Need to Increase the Region’s Commitment to Higher Education
  • Other Significant Supply-Side Contributions-Research Synergisms
    • Medical Research and Medical Education
    • Community Health
    • Public Health Partnerships
    • Homeland Security and Public Safety
    • Energy and the Environment
    • Overall Magnitude of UH Contributions to the Region’s Knowledge Base
  • Other Significant Supply-Side Contributions-Community Service
    • Continuing Special Education Programs
    • Focus on Region’s Youth
    • Private Sector/Non-Profit Support
    • Health Care Services
    • Culture and the Arts
    • Supporting Houston’s Large and Diverse Minority Community.
  • Other Significant Supply-Side Contributions-Community Leadership

Conclusions

Tables

Appendix

  • State Funding
  • Annual Report of Sponsored Research Activity
  • UH System Enrollment
  • Metropolitan Commitments to Higher Education — Comparisons Among the Largest 60 Cities
  • Community Initiatives

It’s Our Minds That Matter

Wish you had the Web site in paper form? Click here to download and print a 16-page brochure that contains much of the information found throughout the site.

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Report PowerPoint

Report.ppt (131 KB)
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UH Master Plan Video

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Master.mpg (Download, 56.8 MB)
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Community Initiatives Database

Search over 600 University of Houston System initiatives that address all aspects of life in our region, from assisting in primary and secondary education to helping local impoverished households and providing critical expertise to metropolitan governments.