THE ECONOMIC IMPACTS & BENEFITS OF
THE UNIVERSITY OF MEMPHIS
AND ITS INVESTMENTS IN RESEARCH ACTIVITIES
Prepared By: appliedanalysis.com
February 28, 2025
Ms. Michele Ehrhart
Senior Vice President and Chief Marketing and Communications Officer
The University of Memphis
3720 Alumni Ave
Memphis, TN 38152
Re: The economic impacts and benefits of the University of Memphis
Dear Ms. Ehrhart:
In accordance with your request, Applied Analysis (“AA”) is pleased to submit this report, The Economic Impacts and Benefits of The University of Memphis. AA was retained by The University of Memphis (“the University”) to evaluate the historical and anticipated economic benefits to the state of Tennessee resulting from the University’s operations, planned capital investments, and research activities, as well as to assess the incremental income generated in Tennessee by the University’s graduates. This summary report contains the salient findings and conclusions of our review and analysis.
This report was prepared by AA in response to your request, however, we make no assertion that the findings contained herein are best suited for all of the University’s purposes. The findings and estimates in this report reflect the most recent data available as of the date of this letter. The information in this report was collected from our internal databases and various third parties, including the University and other public data providers. The data was assembled by AA. While we have no reason to doubt its accuracy, the information collected was not subject to any auditing or review procedures by AA, and thus we can offer no representations or assurances as to its completeness.
This report is an executive summary of the analysis and calculations performed. AA will retain additional working papers relevant to this study. If you reproduce this report, it must be done so in its entirety. We welcome the opportunity to discuss this report with you at any time. Should you have any questions, please contact Jeremy Aguero or Brian Gordon at (702) 967-3333.
Sincerely,
Applied Analysis
Executive Summary
The University of Memphis is a large public university in Tennessee. Positioned in the state’s second-largest metro area, it has continually adapted to meet community needs and foster opportunity in the Memphis area throughout its 112-year history. The University serves a diverse student body, including students from Tennessee and neighboring out-of-state counties in the Delta Region. More than two-thirds (13,720 students) come from in-state counties within the Memphis metro area.
Last year, the University produced nearly 5,100 graduates, including 3,000 bachelor’s degree recipients and 2,100 doctoral and professional degree holders. This represents an increase of more than 700 graduates per year compared to pre-COVID levels, with positive gains since 2019. Notably, more than twothirds of graduates remain in the Memphis metro area more than a decade after graduation, highlighting the substantial skilled labor contributions the University makes to the region.
At the state level, new graduates from The University of Memphis generated an additional $79.2 million in salaries and wages in 2024. Driven by both an increase in the number of graduates and rising wages for skilled workers, incomes have grown 30.7 percent over the last five years. Looking ahead, 76.6 percent of the undergraduate-level graduates and 63.1 percent of the graduate-level graduates from 2024 are expected
to remain in Tennessee a decade from now, ensuring that the economic benefits of the degree holders will remain in the state for years to come. As the University expands its degree offerings and secures additional research opportunities, the economic contributions of each graduating class are expected to grow in both breadth and depth.
The upskilled local labor pool supported by the University represents a meaningful return for the community and adds value for Tennessee. The University’s operations include direct employment of more than 6,200 individuals, including University-employed students and graduate assistants. The in-house positions equate to nearly 4,300 full-time jobs, which in turn support more than 1,400 incremental full-time positions throughout the Tennessee economy.
Salaries and wages paid to University personnel contributed $317.4 million to the local economy in 2024, prompting an additional $133.8 million in indirect and induced wages. In total, the University’s operations support more than 5,700 jobs and $451.2 million in wages annually. This activity generated economic impact of nearly $1.0 billion in 2024, including over a half-billion dollars in direct spending. Over the past five years, the University’s operations alone generated an estimated $4.3 billion in economic output for the state of Tennessee.
The Economic Value of Recent Graduates
Operational Economic Impacts Research Economic Impacts
Beyond its primary operations, the University has strategically invested in research-related activity and expanded its efforts to secure research funding and projects, fostering continued innovation and academic excellence. Since earning the Carnegie R1 designation in 2021, the University of Memphis has experienced acceleration in research awards. In 2024, the University secured $101 million in funding, essentially doubling the $51 million awarded in 2021. In turn, this increase in research activity prompted similar growth in research spending, culminating in $100 million in direct research spending by the University in 2023. This spending generated a total economic impact of $204.6 million, $73.7 million in total wages, and supported more than 900 jobs for the state.
In addition to the recent growth in operational and research activity, the University made significant investments in capital assets. Over the past five years, the University invested $135.4 million in construction-related activity, including $24 million for the Leftwich Tennis Center and $40 million for the Scheidt Family Performing Arts Center. For analysis purposes, approximately $101.6 million (75.0 percent) of this spending occurred in-state, generating a total economic impact of $191.4 million in Tennessee. Construction activity also supported a total of $89.3 million in wages and an annual average of about 200 person-years of employment (one person employed for one year) in the state during the past five years. This means that for every $1.00 invested in capital projects, the University generates $1.88 in total economic output in the local economy.
Capital Investment Economic Impacts
Intercollegiate athletics are a key component of the University’s operations and the Memphis area economy as a whole. The overall impacts sourced to the athletic department include the combined impact of the department’s operations and the off-site visitor spending of out-of-town travelers that attend events in the Memphis area. Offsite visitor spending includes lodging, dining, shopping, entertainment, local transportation and other in-market activities. Over the course of the past three years, which excludes postCOVID anomalies, intercollegiate athletics at the University supported nearly $530 million of total economic impact. The direct impact sourced to department operations, events and out-of-town visitation equated to $294 million during the same period. Indirect (vendor purchases) and induced (employee spending) impacts equated to $236 million. For every dollar of direct impact sourced to the University, a total of $1.80 rippled through the local economy.
Fiscal (Public Revenue) Impacts Intercollegiate Athletics Impacts
Beyond the economic impacts of the University, the fiscal (public revenue) impacts within the region are significant. During the past five years, direct employment sourced to the University generated an estimated $86.2 million in state and local tax revenues. Key components of the revenue were sourced to sales and use taxes, property taxes and fuel (gasoline) taxes. Key beneficiaries of these taxes include various jurisdictions, including the state of Tennessee, Shelby County and the City of Memphis. Examples of areas of focus include general operations of governments, education and road and highway infrastructure. Beyond the notable sources of tax revenue, the University and its employees and graduates contribute greatly to the funding for public services.
Ascend Plan for Enrollment
ANNUAL FALL ENROLLMENT
Undergraduate Graduate
Given the University’s recent strides in expanding and enhancing operations, research, and campus life, admissions and enrollment criteria have also been evaluated and refined to align with the University’s Ascend Plan. As a result, the University raised admissions standards in Fall 2024. Although higher standards resulted in a temporary decline in enrollment, the University expects to yield long-term benefits by attracting higher-quality first-year students. Those meeting the new criteria are more likely to succeed academically, contributing to higher graduation rates and increased academic rigor campus- wide.
For applicants not initially admitted, the University has established alternative pathways to help strengthen their academic readiness while keeping them engaged with the University. These programs are designed to support potential enrollees in preparing them for matriculation to the University and, ultimately, prepare them for a successful post-secondary academic career. Additionally, enrollment stability in future years is further bolstered by the University’s targeted initiatives to increase out-of-state enrollment and maintain competitive tuition costs.
Economic Value: The Increased Earning Potential of Graduates
The University of Memphis plays a vital role in advancing knowledge and educating students, significantly increasing their earning potential and overall community well-being. In 2024, the estimated median U.S. bachelor’s degree holder earned $70,100, $29,000 more than a high school graduate. Additionally, those with graduate or professional degrees earned an estimated median of $90,200, a $20,100 premium over bachelor’s degree holders. Though median earnings in Tennessee are lower than the national average, degree holders in the state report considerable wage premiums, with bachelor’s degree graduates earning an estimated $24,400 more than local high school graduates and those with graduate degrees earning an estimated additional $13,500 over bachelor’s degree holders.
With 3,000 undergraduate and 2,100 graduate students completing their degrees at the University in 2024, the total annual impact of increased earnings across all 5,100 graduates reached $107.5 million. As roughly 77.4 percent of these graduates remain in Tennessee, $79.2 million of this increased annual income was retained within the state. Over the past five years, graduates from the University generated a combined first-year earnings premium of $352.0 million in Tennessee.
Beyond higher wages, increased educational attainment provides broader fiscal and social benefits to Tennessee, including higher tax revenue, greater civic engagement, and accelerated innovation. While the $352.0 million in annual incremental wages generated in Tennessee by the last five graduating classes is significant, it is just one of many ways the University positively impacts the state and its residents.
Median Earnings by Education Level
Total Additional Wages and Salaries Generated
$79.2 MILLION
Annual Wages and Salaries in Tennessee as a Result of Graduates Staying in the State
$352.0 MILLION
Wages and Salaries Generated in Tennessee Over Five Years
Graduate Retention
The University of Memphis has a strong in-state graduate retention rate, with 82.0 percent of bachelor’s degree holders remaining in Tennessee one year after graduation. A decade after graduation, more than three-quarters remain in-state, with the vast majority staying within the same metro area as the University. This in-state retention rate is significantly higher than the 66.0 percent average of all public four-year institutions in the South.
Graduates’ Earnings Premium 2024
+$24,400
Additional Annual Earnings for a Bachelor’s Degree Holder in Tennessee +$13,500
Additional Annual Earnings for a Graduate Degree Holder in Tennessee
Tennessee also benefits from high in-state retention of the University’s graduate and professional students, with more than two-thirds remaining in-state a year after graduation, despite the increased economic and geographic mobility the new degree provides. Even after ten years, more than three in five remain in Tennessee, and more than half reside in the Memphis metro area.
Source: W.E. Upjohn Institute for Employment Research
Local Graduate Retention by Degree Type
15,198 12,267
74.4% of Graduates remain in tennessee
Calculating Economic Impact
The Ripple Effect
Consistent with traditional economic impact modeling, the economic impact analysis presented herein considers both the recurring, or ‘regular’, activities of the University and nonrecurring investment activities in significant capital projects related to the University’s master plan. Recurring activities include activities such as operational expenditures, employment and research-related initiatives. Non-recurring activities include spending on planning, design, and construction costs associated with critical capital projects such as the construction of a new dormitory or the renovation of an outdated campus building.
The impact of these activities is calculated and totaled across three levels of impact: (1) direct impacts; (2) indirect impacts; and (3) induced impacts.
Direct impacts constitute actions undertaken by the University itself. This includes the University’s expenditures (output), employees (jobs), and wages paid by the University. Baseline data is sourced to the University and calculated values based on known expenditures.
Indirect impacts reflect vendor-related spending, including the University’s purchase of goods and services to support its direct operations. For example, when the University purchases books for the library, that money becomes revenue for the vendor from which those books were purchased. That vendor then pays wages to its employees, which supports those positions and wages. Induced impacts are the output, employment, and wages that result from employee spending. This includes the full cascade or “ripple” of spending that flows through the economy as employees spend money at a grocery store or a doctor’s office.
Indirect and induced impact data are calculated from the known direct impacts using IMPLAN, a nationally recognized economic input-output modeling program. These impacts are then summed across all three levels (direct, indirect, and induced) to calculate the total impact, otherwise known as the Ripple Effect.
Unless otherwise indicated, this analysis presents employment impacts and jobs in numbers equivalent to the full-time employment of one person for one year. For operations and
research impacts, due to the higher consistency in both employment count and location for these areas, this data is presented as an annual average. That is, for every fulltime-equivalent employee working at the University (direct employment), the indirect, induced, and total impacts are a calculated annual average based on the known direct employment.
For construction impacts, due to the more temporary nature of the relationship between workers directly involved in the project
and the University, the indirect, induced, and total impacts are stated on a person-year of employment basis for the year in which the construction took place. Although these workers may be employed and working in the Memphis area for years to come, they are only working on a project directly connected to the University, and thus relevant to this report, for a limited time. Therefore, it is only the equivalent years of these workers’ time, and the resulting employment of others, that is presented in the construction impacts.
The direct expenditures of the University on its operations, incremental earnings of graduates and construction-related activities.
The vendor purchases of goods and services that support the University’s operations, incremental earnings of graduates and construction activities.
Consumer
spending in the local economy sourced to employee wages.
(RIPPLE EFFECT)
The combined impact of the direct spending of the University, vendor purchases and overall employee spending throughout the local community.
The Economic Impact of Operations
The Recurring Impact of The University’s Operations
Although the University is expanding its reach as it invests in new facilities and expanded research capabilities, the overall operations generate significant impacts within the local economy. From a professor lecturing on cutting-edge research to a member of the facilities staff replacing a light bulb, the University is a major economic force in both the immediate Memphis metro area and Tennessee as a whole. Employing more than 6,200 employees, with a full-time equivalent of nearly 4,300 positions, and direct annual operating expenditures of $547.2 million (excluding master-planned construction), the University has a profound impact on the state.
These include a ripple effect of more than 1,400 full-time positions in Tennessee, 400 through indirect impact and 1,000 through induced impacts. Though employment counts at the University experienced a slight decline in 2021 and 2022 due
to the effects of COVID-19, they have rebounded over the past two years, nearing pre-pandemic levels. Over the past five years, the University has directly supported 4,300 annual fulltime- equivalent employees (on average), generating a ripple effect of 1,400 employees, for a total annual average impact of 5,700 jobs.
The 4,300 annual direct full-time-equivalent positions at the University over the last five years supported $1.5 billion in wages, generating an additional $171.1 million in indirect wages and $444.1 million in induced earnings. Total wage impacts reached $2.1 billion over the past five years. In 2024 alone, the University supported a total of $451.2 million in wages and salaries. In total, the University produced $547.2 million in direct output in 2024 and a cumulative impact of $2.4 billion since 2020. Direct impact increased by $86.6 million from
Annual Operations Impacts
just a few years ago. This growth has also driven increases in indirect and induced impacts, which totaled $136.0 million and $282.3 million, respectively, in 2024.
Over the last five years, total economic impact sourced exclusively to operational activity reached $4.3 billion. As the University continues to make critical investments in its operations, the resulting impacts should provide stability within the local economy.
Secondary Jobs Supported by Industry
Of the 1,430 jobs indirectly supported and induced by the University’s operational activities, many are in industries centered around living essentials such as housing, healthcare, basic goods, and food. Having more jobs in these areas not only helps supply employees of the University and their families with essential goods and services but also diversifies and expands the number of businesses and employees in these industries locally. As a result, residents of Tennessee and the Memphis metro area have greater access to a wide range of offerings.
The Economic Impact of Research Activities
The Recurring Impact of The University’s Research Activities
Since being granted Carnegie R1 Institution status in late2021, the University has continued to push the boundaries of innovation by pursuing large-scale projects backed by government initiatives and investing in capital resources to support research activities.
Major grants awarded to the University include workforceand community-focused programs such as Upskill MidSouth and Growing Relational and Occupational Wealth in West Tennessee Households (GROWWTH) alongside STEM-focused initiatives. Upskill Midsouth is a $25.1 million regional industryled economic program, funded by the Economic Development Agency, aimed at cultivating a skilled workforce needed to remain competitive. This program is a collaborative effort led by the University in partnership with the Tennessee Department of Labor and Workforce Development and the Greater Memphis Chamber of Commerce.
Similarly, the GROWWTH program is a $25.0 million initiative supported by Tennessee Opportunity Pilot Initiative Implementation Grant funding. This program aims to eliminate barriers for low-income families in western Tennessee to transition from social safety net programs to self-sufficiency and further support the economic mobility of these families by improving access to regional resources and fostering an interest in personal and professional growth.
Other projects taking place at the University, such as the development of CanAiry, an innovative medical device for patients with Chronic Obstructive Pulmonary Disease (COPD), have attracted major grant funding from government agencies including the National Institutes of Health, Centers for Disease Control and Prevention, and Department of Defense. In fiscal year 2024, 15 projects at the University each received more than $1.0 million in funding, with an average award size exceeding $300,000 across all projects.
Annual Research Impacts
In total, the University has more than doubled the annual research awards it received over the last five years, winning more than $101.0 million in fiscal year 2024, up from $39.5 million in 2020. This volume of research has allowed the University to strengthen the intellectual capital and experience of its staff and faculty, making it a well-positioned springboard into the future.
Naturally, this substantial growth in research funding coming into the University has prompted similar increases in research spending, including $100.0 million in 2023. This spending resulted in $59.2 million in indirect impact and $45.4 million in induced impact for a total economic impact of $204.6 million resulting from the University’s research activities in 2023. This means that for every dollar the University spends on research, a total of $2.05 is spent in the local economy.
In 2023, the University’s research activities directly supported nearly 400 jobs and $35.6 million in wages. The ripple effects of these efforts supported an additional 550 jobs and $38.1 million in wages for a total employment impact of just under 950 and total wage impact of $73.7 million in 2023.
Over the past five years, the economic impact of research at the University has been substantial, totaling more than 680 annual jobs, $269.9 million in wages, and $749.6 million in output from 2019 to 2023.
This growth is also reflected in the University’s capital investments. In Fall 2024, the University opened the Edwards Research and Innovation Center (ERIC), a 65,000-square-foot, state-of-the-art STEM facility valued at $44.9 million. This project is one of many major additions planned over the next decade. By 2035, the University anticipates investing $149.0 million in new STEM and research-focused infrastructure, including two new research facilities—one for interdisciplinary science research on the main campus and another to the west.
Beyond new construction, the University is planning and executing upgrades to multiple primary academic spaces. This includes modernizing 115,000 square feet of lab space and investing an additional $110.0 million to develop researchfocused facilities.
Secondary Jobs Supported by Industry
The University’s research activities support 552 jobs beyond the 382 in direct employment via indirect and induced impacts on an annual basis. The industry that receives the largest employment boost as a result is professional, scientific, and technical services, with 90 employees annually supported by the research activities of the University.
The Economic Impact of Capital Investments
The Impact of The University’s Master-Planned Capital Investments
While the research- and STEM-related capital investments noted above contribute significantly to the total impact of the University’s activities, major expansions and transformational renovations to athletic, residential, and other facilities are also underway in the heart of Memphis. The University is developing new educational spaces beyond STEM, including extensive renovations and an expansion to the Fogelman College of Business and Economics. The $30.0 million renovation, set for completion in 2026 or early 2027, will upgrade student services, study areas, labs, offices and classrooms. Following this, a new $47.0 million addition will be completed by 2030. Additionally, the University plans to replace two academic buildings as part of a $99.0 million investment in educational spaces for departments outside of the sciences and business.
Mynders Hall, one of the University’s original three buildings, will undergo a $25.0 million renovation starting in 2025. This will create a designated space for computational research and collaborative meeting areas in the heart of campus.
To accommodate the University’s 47.5 percent graduate enrollment growth over the past five years, the Master Plan includes multiple new residential facilities, including the $58.0 million Park Avenue Student Housing project, which will add 542 new graduate student beds by Fall 2026. Recent athletic facility improvements include the $37.5 million combined renovations to the Mike Rose Aquatics Center and Leftwich Tennis Center. Future projects will focus on enhancing the student-athlete and fan experience, including the $35.0 million Student-Athlete Success Center. It will include The Liza Wellford Fletcher Stadium, a $9.0 million facility featuring upgraded locker rooms, recovery areas, training spaces, and fan seating.
Annual Capital Investment Impacts
Beyond the social and athletic benefits, these academic, athletic, and housing investments have had a significant economic impact. With an estimated three-fourths of construction spending occurring in-state, the University has directly supported 130 jobs, $53.7 million in wages, and $101.6 million in output within Tennessee. The ripple effect of these investments bring the total economic impact to more than 200 annual jobs, $89.3 million in wages, and $191.4 million in output.
Secondary Jobs Supported by Industry
The 137 full-time equivalent employees directly employed by the University’s construction projects in 2024 generated a ripple effect of an additional 94 employees in the Tennessee economy. This means that for every three employees working on construction for the University, approximately two more jobs were supported in Tennessee. While these jobs were widely distributed across all industries, retail trade and healthcare and social assistance benefited the most.
Capital Investments Timeline
Scheidt Family Performing Arts Center
Mike Rose Aquatics Center
Park Ave. Student Housing Mynders Hall
Fogelman Renovation
Interdisciplinary Science Research Research Modernization Project
Research Park
Looking Forward
As construction on major projects progresses over the next decade, the economic impact will continue to expand. Of the anticipated $576.7 million in direct construction spending by the University from 2025 to 2034, $432.5 million is expected to be spent in-state. On average, the University is expected to spend $43.3 million annually on capital investment projects. Combined with an average annual $14.2 million in indirect output and $22.8 million in induced output, the total economic output of these projects will exceed $800.0 million over the next ten years.
Deloach Student Housing
Student Athlete Success Center
Fogelman Addition
Research Renovation
Performance Contracting Wilson Hospitality
This construction activity is also expected to support nearly 400 annual direct jobs and $325.3 million in direct wages, including just under 300 annual direct jobs and $244.0 million in direct wages within Tennessee. The ripple effect of these direct actions include 150 additional annual jobs and another $146.2 million in wages. In total, the next ten years of construction activity at the University of Memphis are expected to result in nearly 450 annual jobs and $390.1 million in wages within the local economy.
Future Master-Planned Investments
The Economic Impact of Intercollegiate Athletics
Beyond the media exposure, quality of life implications and student experience, collegiate athletics sourced to the University contribute significantly to the local economy. Two key aspects of impact quantified in this analysis include: (1) the economic activity generated by the athletics program; and (2) the off-site visitor spending of out-of-town travelers who attend events in the Memphis area. The off-site visitor spending includes purchases for lodging, dining, shopping, entertainment, local transportation and other in-market activities.
Over the past three years, which omits COVID-era anomalies, intercollegiate athletics at the University supported $529.7 million of total economic impact. The direct impact sourced to department operations, events and out-of-town visitation equated to $293.5 million during the same period. The combined impact of indirect (vendor purchases) and induced (employee spending) impacts equated to $236.2 million. In other words, for every dollar of direct impact sourced to the University, a total of $1.80 rippled through the local economy.
On average, the University’s intercollegiate athletics activities support an estimated 1,205 jobs per year, which earn overall salaries and wages of $89.0 million per year. When computed on a cumulative basis over the past three years, incomes for local workers were boosted by $267.0 million as a result of the University’s athletics-related events and visitation to the Memphis area.
The University welcomes nearly 500,000 out-of-town travelers each year who attend events, including baseball, basketball and football. According to Memphis Tourism, travelers to Memphis spend approximately $871 per night per travel party, and they stay an average of 3.6 nights per trip. The direct spending sourced to out-of-town travelers attending University events is estimated to be $181.5 million over the past three years, reflecting an annual average spending estimate of $60.5 million.
University of Memphis Intercollegiate Athletics
The Fiscal Impact of the University
Tennessee has a significant number of taxes, fees, exactions and charges that are levied on businesses, residents and visitors. However, for purposes of this analysis, the most notable public revenue sources have been included to highlight some of the largest taxation categories and key beneficiaries of those taxes. Taxes inuring to the federal government, while significant, are omitted from this analysis as this effort is specific to state and local fiscal impacts. By contrast to the economic impacts, which focus on direct, indirect and induced impacts, fiscal
Sales and Use Taxes
impacts reflect only the direct consequences of the University’s activities. This approach is a function of the “near impossibility” of accurately predicting the secondary fiscal consequences of the University’s activities as well as the potential for double counting. As such, the impacts cited herein should be considered conservative estimates. This analysis focused on capturing incomes sourced to the University’s activities, including operations, research initiatives, construction activity and incremental earnings of graduates.
Sales tax applies to retail sales of most tangible personal property and certain services in Tennessee. The base state rate is 7.0 percent, and local jurisdictions (county and city) add up to 2.75 percent – 2.25 percent to Shelby County and 0.50 percent to the City of Memphis. Essential food groceries are taxed at a reduced 4.0 percent state rate. Revenue from the 7.0 percent state portion supports the state budget, while the balance is distributed to Shelby County and Memphis (often funding local services and schools).
Property Taxes
Another significant tax contributor is property taxes (state and local). Annual ad valorem tax on real property (i.e., land and buildings) is set by the Shelby County Commission ($2.69 per $100 assessed value for fiscal 2025–26). County property tax funds county services such as the county school system, law
Fuel (Gasoline) Taxes
Another notable tax includes fuel (i.e., gasoline) taxes. Tennessee’s gasoline tax is about 26 cents per gallon (plus a 1.4-cent petroleum fee), totaling 27.4 cents per gallon as of
enforcement and public facilities. Residents within the City of Memphis pay both this county tax and the city tax ($3.1954 per $100 of assessed value). City (local) property tax revenues fund municipal services – police and fire departments, roads and infrastructure, parks, sanitation and other city operations.
During the past five years, direct employment sourced to the University generated an estimated $86.2 million in state and local tax revenues. Key components of the revenue were sourced to sales and use taxes incurred by employees, property taxes paid by homeowners and fuel (gasoline) taxes paid that fund roads and highways. Key beneficiaries of the taxes include the Tennessee general fund, Shelby County and City of Memphis.
2024. Proceeds go to the state’s Highway Fund to build and maintain roads and transportation infrastructure.
Methodology and Limitations
Methodology (IMPLAN)
● 1 of 3 nationally recognized impact analysis software tools.
● Developed by Minnesota IMPLAN Group, Inc. and used by more than 1,000 public and private institutions.
● IMPLAN is an input-output model that utilizes complex economic equations to explain how the “outputs” of one industry become the “inputs” of others and vice versa.
● This relationship is sometimes referred to as the “multiplier effect,” illustrating how changes in one sector of the economy can affect other sectors.
Limitations and Assumptions
Input-output models, as is the case with all econometric models, are not without their limitations; the statistical model used in this analysis, IMPLAN, for example, assumes that capital and labor are used in fixed proportions. This means that for every job created or lost, a fixed change in investment, income, and employment results
In reality, institutions, consumers, and governments respond to stimuli in complex ways, including changing the mix of capital or labor as well as the types and frequencies of investment. Importantly, each impacting force has its own unique characteristics, affecting how consumers and businesses respond to the given change.
Our research was conducted using both quantitative and qualitative data provided by the University and third-party sources. This summary report was assembled by Applied Analysis using that data. While we have no reason to doubt the accuracy of the data reported herein or utilized in the formation of our findings, the information collected was not subjected to any auditing or review procedures by Applied Analysis; and therefore, we make no representations or assurances as to its completeness. Our findings and estimates are as of the date of report publication.
About the Author
Applied Analysis (“AA”) is an economic analysis and broadbased consulting firm founded in 1997, serving both the public and private sectors. Our team has extensive experience in economics, public policy analysis, hospitality consulting, market analysis, information technology, finance, and other business consulting roles. We apply this knowledge in an effort to develop creative solutions to our clients’ challenges.
Allegiant Stadium
Association of Gaming Equipment Manufacturers
Boyd Gaming
Caesars Entertainment
City of Henderson
City of Las Vegas
Clark County Regional Flood Control District
Cox Communications
Desert Research Institute
Downtown Project
Formula 1
Harry Reid International (LAS) Airport
Insomniac / EDC
Ioneer USA Corporation
Kinross Gold Corporation
Las Vegas Convention and Visitors Authority
Las Vegas Global Economic Alliance
Las Vegas Stadium Authority
MGM Resorts International
Nevada Contractors Association
Nevada Gold Mines
Additionally, our team has extensive experience in preparing economic and fiscal impact analyses. AA has been retained by a number of organizations and industries to review and analyze the economic, fiscal, and social impacts of community investments and operations. We have provided services similar to those contained herein on behalf of the following representative clients.
Nevada Mining Association
Nevada Resort Association
Nevada State University
NV Energy
Oakland Athletics
Olympia Companies
Regional Transportation Commission of Southern Nevada
Resorts World Las Vegas
Southern Nevada Home Builders Association
Southern Nevada Tourism Infrastructure Committee
Station Casinos
Super Bowl LVIII
Switch
T-Mobile Arena
Tesla
Touro University
UFC
University of Memphis
University of Nevada, Las Vegas
University of Nevada, Reno
WWE
These
“ “
are very important times for the University of Memphis as we continue to ascend as a respected Carnegie R1 institution.
Bill Hardgrave President