This study used IMPLAN to estimate economic impact of UW-Superior. IMPLAN is a software that uses an input-output modelling system. An input-output (I-O) model describes interrelations among different economic agents of an economy. Specifically, it records all the sales and purchases of goods and services that occur between all sectors of an economy during a given time period (Deller, Hoyt, Hueth, and, Sundaram-Stukel, 2009). For the purpose of this study, the Douglas County I-O model with 2017 data was used to represent the local economy. The IMPLAN model utilized the SAM (social accounting matrix) multiplier and described total output by industry, personal income, total income, value added and employment to display economic activities of Douglas County. Expenditures by an institution or individual work through a multiplier process in an economy. For example, suppose UW-Superior uses the services of Exhaust Pros Superior for university vehicle maintenance and pays $1,000. Exhaust Pros Superior then uses that amount to pay its employees and suppliers. Some of its employees and suppliers are residents of local area and spend the money they receive in the local economy. In this way some part of the initial $1,000 is spent again in the local economy. This is how the multiplier process works. It should be mentioned that some of that $1,000 will leak out of the local economy as Exhaust Pros Superior has to pay federal taxes, suppliers that are located outside of Superior/Douglas County, and employees that spend some of their money outside of Superior/Douglas County. To estimate the economic impact of UW-Superior on the local economy, this study utilized expenditures by UW-Superior institution, employees, students, and visitors in the IMPLAN model. The IMPLAN model provided estimates of how much these expenditures affected Superior/Douglas County in the form of initial spending, direct spending, indirect spending and induced spending. According to UW-Superior Budget Office, in fiscal year 2018, UW-Superior made an initial spending of $32,502,476 in employee payroll and fringe benefits. Direct spending was made of institutional spending on local supplies and expenses (non-payroll spending), employee spending, student spending, and visitor spending. Indirect spending included inter-industry spending or local spending made by businesses which supplied goods and services to UW-Superior, its employees, students, and visitors. Induced spending was composed of local spending that occurred due to changes in household income resulting from directly and indirectly affected local businesses.
6 To access to the full report including appendices, visit uwsuper.edu/econimpact
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