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Measuring the value of Oregon's urban research university

Every $1 PSU spends as an employer, purchaser, researcher, or real estate developer has the regional economic impact of roughly $2.40. Using this multiplier of 2.4*, Portland State's economic impact last year exceeded $1.4 billion.

* The multiplier for Higher Education from the proprietary IMPLAN input-output model developed by the University of Minnesota and U.S.D.A. Forest Service was used to determine PSU's total economic impact.

The economic multiplier effect

The multiplier explained

Every dollar PSU spends enables additional spending that ripples through the community and region. This economic multiplier measures indirect impact such as:

  • Faculty, student, and staff spending on housing and retail purchases.
  • PSU spending on supplies and services from business vendors in the community, inducing continued spending in the community.
Eric Hovee and Andrea Logue, Portland State University Economic Benefits Assessment, August 2004