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THE LOCAL ECONOMIC IMPACT OF A LARGE RESEARCH UNIVERSITY: EVIDENCE FROM UC MERCED

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In this paper, I estimate the short‐run economic effects of the opening of The University of California, Merced in 2005 by comparing Merced with a counterfactual constructed by the synthetic control method. During the period 2005–2014, the opening of the campus has increased local employment by 13%, mainly in nontraded industries, such as the service sector. These findings suggest that a large research university could bring immediate benefits to the local economy because of its large demand from students and employees. (JEL J24, O18, R11)
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Document Type: Research Article

Publication date: January 1, 2019

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