The Center for Economic Research, housed in Louisiana Tech University’s College of Business, recently published the sixth installment of the Regional Economic Analysis of Louisiana (REAL) Report.
A cohesive body of research examining multiple aspects of Louisiana standards of living, the Spring 2021 issue explores the economic impact of the global COVID-19 pandemic, with specific focuses on economic forecasts for the state, employment losses and gains, and foreclosure rates. The report also examines the economic impact of Louisiana Tech newest residence facilities as well as the impact of one Tech student on the local economy.
Team members contributing to this issue include Assistant Professor of Economics Dr. Patrick Scott, who serves as Center director, senior finance major Bailey Catoire, junior economics major Patrick Miller, junior economics major Colyn Sevario, and junior finance major Joshua Whitlow.
According to the report, one Louisiana Tech student has an estimated economic output multiplier of approximately 2.84. This indicates that for every dollar spent, $2.84 is generated and recirculated into the local economy. Tech’s on-campus student population induces $1.9 million in sales tax annually, with one Louisiana Tech student producing $5,400 in sales tax revenue for the state and approximately $7,170 in state taxes of all types.
“As Louisiana Tech continues to grow enrollment, the strategic importance of the University to Ruston and Lincoln Parish is difficult to understate,” Scott said. “It is the largest employer in the parish and every student that attends Tech sends out numerous capillary waves throughout the local economy.”
One of those waves currently impacting the local economy is the construction of Louisiana Tech’s newest phase of student housing, Richardson and Cottingham Halls. The construction project, itself, is assumed to indirectly support 90 jobs and induce 130 more. It also brings Louisiana $1.6 million in tax dollars. Overall, there is twice as much of an economic impact for every dollar spent on this project.
To read the full Spring 2021 REAL Report, including state unemployment rates, wage growth, and foreclosure rates, visit business.latech.edu/realreport.
The REAL Report is a quarterly publication designed to provide insight into recent economic developments in Louisiana. It is produced by the Center for Economic Research, in collaboration with faculty and students in Louisiana Tech University’s College of Business, for the state of Louisiana and our region of the South.