Distributional Impact of University-Led Revitalization on the Neighborhood Economy: A Computable General Equilbrium Model of a Small Urban Area
Keywords:
Economic impacts, College town revitalization, Computable General Equilibrium (CGE)Abstract
This paper assesses the economic impact of Cornell University on Tompkins County, New York, focusing on the impact of the investment on the new mixed-used development in Collegetown revitalization project. This study is one of the first attempts to study the economic impact of a university using a Computable General Equilibrium (CGE) model, which is an extension of an input-output model. In general, Social Accounting Matrix (SAM) multiplier analysis—a method widely-used in an economic impact study—assumes exogenous prices, excess production capacity, and no substitution parameters or feed-back effects. Thus, the economic impacts from SAM are likely to be overestimated and always positive. In addition, the assumption of increasing-returns-to-scale is incorporated into the framework of a small-area CGE model. This extension of the model allows for a more realistic representation of the imperfect competition in the economic simulation, which can be used as one of planning support tools.Downloads
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