Taxpayer Return on Investment in Florida Public Libraries: Summary Report

Griffiths, Jose-Marie, Donald W. King, Christinger Tomer, Thomas Lynch, Julie Harrington. 2004. “Taxpayer return on investment in Florida public libraries: summary report.” Tallahassee, FL: Florida Dept. of State, State Library and Archives.

• Taxpayer Return on Investment in Florida Public Libraries: Summary Report, September 2004 (PDF) (Research)

Griffiths (2004) uses an incorrect method, regional input-output analysis, for estimating the indirect benefits of these libraries. This method is popular with private consultants but is universally rejected by economists as an appropriate method for estimating the indirect effects of libraries.  The regional input-output analysis, often called IMPLAN or REMI after the specific computer models, estimates the multiplier effects of spending by libraries. These models are very useful when the funds for spending come from outside the region in which they are spent. Hence, the input-output models work well for exports, for tourist spending, for state and federal aid from outside the region being studied. However, they are not useful if the funding comes from within the region being studied. Since only a very small percentage of library funding comes from state and federal aid, regional input-output models are not appropriate methods for estimating indirect effects.

The book by Elliott, Holt, Hayden, Holt (2006) did not even mention input-output analysis. Regional input-output analysis (i.e. REMI or IMPLAN) is an excellent tool, but not for measuring the indirect benefits of libraries.