Stephen Cooper

Publication Date

7-1978

Advisor(s) - Committee Chair

Michael Morgan, Stephen Lile, B.W. Pulsinelli

Degree Program

Department of Economics

Degree Type

Master of Arts

Abstract

The costs incurred by the community resulting from Western Kentucky University’s location – cost of educating children of university related personnel, cost of services provided by the local governments to the university community, and the lost property tax revenue resulting from the tax exemption of university property – were estimated as were the benefits enjoyed by the community as a result of the University’s location – local expenditures, local employment generated by the university’s presence, the university community’s impact on the local banking system’s credit base, and the occupational license tax receipts levied by the city on the university payroll. The local university related expenditures plus the university community’s local tax expenditures were compared to the university related costs to the community to compute a benefit-cost ratio of 6.99 to 1.0 for the Bowling Green – Warren County community. The expenditure habits of university employees and students were estimated from the responses received to questionnaires administered to university employees and students, while the bulk of the information concerned with the university’s costs to the community was obtained from local university and government officials.

A business survey was used to determine the economic base of the local economy and to compute a suitable multiplier for the Warren County area. A business survey provided the needed information to estimate the local income generated by the university community. The local income generated was estimated to be $15,440,000. It was established that Western Kentucky University was the largest single generator of jobs, with 19.1 percent of the available local jobs being directly or indirectly attributed to the University.

Disciplines

Economics | Educational Administration and Supervision | Higher Education | Public Economics | Social and Behavioral Sciences

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