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Abstract

The U.S. Department of Commerce 1967 input-output model was adjusted and used to determine the economic impact of the schools' expenditure of the Federal cash contribution, and of the Federal commodity contributions to the schools. Economic impact was measured in terms of changes in business receipts, gross national product, and jobs, for calendar year 1972 and for fiscal year 1974. In each example, the amount required to fund the cash contribution, or the purchase of the commodities contributed was obtained by increasing the Federal personal income taxes of taxpayers and reducing their expenditures by an equivalent amount prior to the transfer of the contribution to the schools. For this reason, the results obtained represent NET impact.

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